Penneys-owner cautious on consumer spending after profit fall

Total sales in Europe, excluding the UK, were 18% higher, with an increase in like-for-like sales of 8% with higher average selling prices and footfall

Picture Denis Minihane.

Penneys-owner Associated British Foods reported a 3% fall in first-half profit and kept its guidance for a flat outcome for the full year, staying cautious about the resilience of consumer spending in an economic downturn.

The group, which also owns major sugar, grocery and ingredients businesses, said adjusted operating profit, its key profit measure, was £684m (€772.8m) in the six months to March 4, on revenue up 21% to 9.56bn (€10.8bn).