Penneys cuts sales outlook after weak Christmas quarter

Shares in AB Foods were down 3% on Thursday, extending losses over the last year to 18%

Associated British Foods said Penneys/Primark was now targeting 'low single digit' sales growth in 2025.

Penneys owner Associated British Foods (ABF) cut annual sales guidance for the budget fashion retailer after reporting weak trading in its main Ireland and UK market in the Christmas quarter that it said reflected pressure on lower-income shoppers.

The group said Penneys/Primark was now targeting "low single digit" sales growth in 2025, having previously forecast "mid single digit" growth, but kept its forecast for an adjusted operating margin in line with the 11.7% achieved in 2023/24.