Primark’s full-year profits surged due to a notable improvement in margins and an increase in sales. The apparel retailer’s adjusted operating profit increased 51 per cent to US $ 1.43 billion, while its margin increased from 8.2 per cent to 11.7 per cent from the previous year.
As the bargain fashion behemoth announced “growth” in the UK and a solid performance in markets including the US, France, Spain, Italy, and Central and Eastern Europe, sales grew 6 per cent to 9.4 per cent.
The business claimed that its “great value clothing, unique store experience, and increased digital engagement” were beneficial. Primark currently anticipates maintaining its margin while aiming for mid-single-digit sales growth in 2025.
George Weston, CEO of Primark’s parent company Associated British Foods stated that there was “significant white space for new stores” in the US and Europe, where the retailer plans to continue its store rollout program. This will help the company achieve “sustainable growth over the medium and long term.”
As it concentrates on like-for-like sales growth in its more established areas, it anticipates that new shops will contribute between 4 per cent and 5 per cent annually to Primark’s overall sales growth for the foreseeable future.
