Primark sales dampened by bad weather in eurozone

Primark sales dampened by bad weather in eurozone

Like-for-like sales at Primark fell in the year to September as bad weather weighed on trading in Europe.

The budget fashion retailer, which is owned by Associated British Foods (ABF), reported a 2.1% decline in like-for-like sales, a measure which excludes new store openings.

In contrast, overall revenue growth at the brand was 6% for the 52 weeks to September 15, aided by expansion.

The slide in comparable sales was driven by a 4.7% drop in the eurozone, where unseasonable weather was blamed for the slump.

New store openings in the region are also thought to have cannibalised trade from existing branches.

In the UK, like-for-like sales were up 1.2% and Primark's share of the total clothing market increased significantly amid a declining high street. Overall sales were 5.3% ahead of last year.

Primark pledged to continue expanding into new stores, targeting the US and Central and Eastern Europe in particular.

The retailer will also open a new Belfast store following the destruction of its existing site in a fire in August.

Primark sales dampened by bad weather in eurozone

ABF's overall revenue was 1% higher, as Twinings Ovaltine drove growth in the grocery business, but the sugar division took a hit from lower EU prices.

Adjusted profit before tax was 5% higher than last year at £1.37 billion.

The company noted that it is making emergency preparations for the "unlikely" event of a no-deal Brexit, which it said could cause disruption.

But ABF also said the UK's withdrawal from the EU could have potential benefits for the company amid a shift in the British food industry.

Meanwhile, improved margins in the UK and Australian business as well as the acquisition of brands such as balsamic vinegar-maker Acetum are expected to push up profits next year.

Chief executive George Weston said: "Looking ahead, management have clear plans for further investment and for pursuing opportunities for business improvement."

- PA

More in this Section

UK's competition watchdog set to probe Takeaway’s £6bn Just Eat takeoverUK's competition watchdog set to probe Takeaway’s £6bn Just Eat takeover

At Davos, US and EU increase invective to clash over cars and digital taxesAt Davos, US and EU increase invective to clash over cars and digital taxes

Merkel seeks unity of purpose over climate changeMerkel seeks unity of purpose over climate change

Head & Shoulders and Olay boost sales at Procter & GambleHead & Shoulders and Olay boost sales at Procter & Gamble


Lifestyle

After years of saying no, Patrick Stewart tells Georgia Humphreys why he finally agreed to reprise his role as Jean-Luc PicardPatrick Stewart on boldly returning for Star Trek Picard

Cork teenager Jessie Griffin is launching a new comic-book series about her own life. She tells Donal O’Keeffe about her work as a comic artist, living with Asperger’s, and her life-changing time with the Cork Life CentrePicture perfect way of sharing Jessie’s story

Sorting out Cork people for agesAsk Audrey: The only way to improve air quality in Douglas is to move it upwind from Passage West

The Lighthouse is being hailed as one of the best — and strangest — films of the year. Its director tells Esther McCarthy about casting Robert Pattinson, and why he used 100-year-old lensesGoing against the grain: Robert Eggers talks about making his latest film The Lighthouse

More From The Irish Examiner