Average daily profits at operator of Penneys nears €4m

Directors state Irish stores' trading performance negatively impacted by cost of living affecting customers' disposable income

Unseasonably warm weather in the first half of the financial year impacted revenues at Penneys' Irish store network.

The firm which operates the Penneys chain of outlets here last year recorded daily average pre-tax profits of almost €4m.

Accounts lodged by Primark Ltd show that the company’s pre-tax profits increased by 59% to €1.4bn in the 12 months to the end of September 13 last, on the back of €560m received in dividends from subsidiaries.

The pre-tax profits equate to an average daily pre-tax profit of €3.84m that also includes the performance of Primark’s Primark Way Franchise: Primark’s intellectual property and services to Primark’s overseas businesses, along with its retail network here.

However, unseasonably warm weather in the first half of the financial year impacted revenues at Penneys Irish store network, as trading revenues for the year dipped by 1.6%, from €741.7m to €729.6m.

The €729.6m in revenues for the 52 weeks works out at the average weekly revenues of €14m for the 38-unit Irish strong network of Penneys stores.

The directors state that “Irish stores’ trading performance declined in the current year. Trade in the first half of the year was impacted by unseasonably warm weather”. 

They state that “ongoing increases in the cost of living in the areas of food, utilities, and services have also reduced customers’ disposable income, further impacting overall sales. Trade was stronger in the second half of the year”.

A spokesperson for Primark said financial year 2024/2025 “was a year of continued investment for Primark in Ireland. We invested more than €13.5m in Penneys stores across the country, refurbishing stores in Kerry, Dublin, and Limerick — while making further progress on our €250m investment programme”.

She said: “Trading in the first half of the year was weaker as consumers continued to face a challenging economic environment, but improved strongly in the second half.

“Customers responded well to our product offer, particularly in womenswear and everyday essentials.”

Penneys in Ireland employs over 5,500 in its stores across Ireland and an additional 1,400 in its global headquarters in Dublin.

Overall revenues at Primark Ltd last year increased marginally from €4.1bn to €4.19bn, and the revenues were made up of €2.15bn of revenues from intercompany supplies of inventory; Primark Way franchise income of €1.3bn, and the remaining €729.58m from Irish retail revenues.

The Primark Way franchise is a business format which is developed and run from Ireland and provides intellectual property, know-how, and services to Primark businesses overseas.

Continued growth

The Primark spokesperson said: “Overall, [financial year] ‘24/’25 was a year of continued growth for Primark through sustained investment in expanding and renovating our store estate, and improving our customer offering in Ireland, Europe, and the US.

"We also announced our first franchise partnership with the Alshaya group in the Middle East and expanded our click and collect service to all GB [Great Britain] stores as well.” 

The company recorded a post tax profit of €1.279bn after incurring a corporation tax charge of €123.95m.

The firm paid a dividend of €600m last year and in a post balance sheet event in December 2025 declared and paid a further dividend of €450m.

Primark opened its first store in Dublin in 1969 under the Penneys name and today the group has over 495 stores across 19 markets and employs 80,000 people globally.

The profit last year takes account of non-cash depreciation costs of €102.5m and non-cash amortisation costs of €48.7m.

Staff costs declined from €319.03m to €305.89m. Directors last year received variable payroll amounts of €4.5m, €5.1m under long term incentive plans, benefits of €400,000, pension contributions of €100,000 while €700,000 was also paid out for compensation for loss of office.

At the end of September 13 last, Primark Ltd’s accumulated profits stood at €2.29bn.