Penneys' profits to recover after fall in costs

Sharp fall in costs of material and shipping expected to result in 'substantial recovery in gross margin', company said

Penneys' owner AB Foods said the retailer - alongside the Primark brand - generated £9bn (€10.4bn) in revenue last year. 

Penneys' owner AB Foods has said it expects profits at the low-cost fashion retailer to substantially recover after the cost of material and freight shipping fell sharply as it heads into the busy Christmas period.

It comes as the company confirms it remains on-track to grow to 530 stores worldwide by 2026.