Penneys: Cost of cotton won’t hit prices

BUDGET retailer Penneys says that clothing prices will not rise despite the soaring cost of cotton.

The company, which trades as Primark in Britain, said its profits will be hit by rising commodity prices as it wants the clothing retailer to keep its competitive edge on the high street.

Operating profits at Primark rose slowly in the first half of its financial year. They were up just 5% to £151 million (€170m) against a 35% improvement in 2010.