Primark like-for-like sales to rise 2%
Tuesday, 28 February 2012
Associated British Foods, the owner of fashion chain Primark, has reported that its half year results due on April 24 will be in line with expectations with all segments of the business delivering revenue growth. The group stated in its
pre close trading statement that trading at Primark was slow at the start of the financial years as a result of the unusually warm autumn but, with particularly strong sales over the Christmas period and good trading since the New Year considering the economic climate, revenue for the first half is expected to be 15 per cent ahead of last year, with like-for-like sales set to increase by 2 per cent.The retaile
r also noted that operating margins will be lower than in the same period last year reflecting its absorption of higher cotton costs, which have fallen from their high point last year and the group has indicated that it will see the benefits of lower input costs in the second half.Primark also continued its store expansion plan this year, with nine new stores opening in the first half, including two in Spain, three in Germany, one in each of Portugal and the Netherlands, and two in the UK including a flagship store in Edinburgh. At the half year the budget fashion chain will be operating from 232 stores with 7.8 million sq ft of selling space, which represents an increase of 0.5 million sq ft since the financial year end.
