Primark bucks negative trend with upbeat outlook

First-half sales are expected to have increased by 11% on a yearly basis at discount clothing retailer Primark, which trades here as Penneys. 

Parent group Associated British Foods (ABF) said an increase in retail selling space has driven revenue at Primark, which should see sales rise by 21% at actual exchange rates. ABF yesterday published a pre-close trading update ahead of announcing interim results for the six months to March 4 in April.

The group maintained its full-year earnings guidance with the growth at Primark supported by better performances in its sugar, grocery, agriculture, and ingredients businesses. Primark accounts for about half of ABF’s profit. Last month, when reporting first-quarter sales growth of 11% for Primark, ABF said the period had seen a “strongly positive” performance, in like-for-like sales in Ireland, via Penneys”.