The Irish textile discounter Primark has exceeded its own expectations in the past few weeks. In the important Christmas business, sales grew surprisingly strongly. This emerges from an interim report published by the parent company Associated British Foods Plc (ABF) on Tuesday.
In the 16 weeks to January 7, Primark reported sales of around £3.14 billion (€3.56 billion), an increase of 18 percent (+15 percent at constant currency) compared to the same period last year. On a like-for-like basis, currency-adjusted sales grew by eleven percent. Thanks to “very strong Christmas business”, the clothing retailer has developed well in all markets and exceeded expectations, ABF said.
In the UK, Primark achieved a sales increase of 15 percent, in the remaining European markets the growth rate was 16 percent (+8 percent like-for-like and currency-adjusted). In the USA, sales increased by four percent compared to the same period of the previous year.
ABF explained that Primark’s operating margin, adjusted for special effects, was recently higher than expected thanks to the surprisingly significant increase in sales. Compared to the same period in the previous year, however, it fell slightly because increased procurement and freight costs weighed on the result.