Primark, the Irish multinational fast fashion retailer, has warned of price rise owing to inflation, despite its year-on-year sales rising by 59 per cent.
The retailer has said that the ongoing supply chain issues as well as growing inflation will force it to increase prices from autumn.
In the period to 5 March 2022, the fashion retailer saw its sales reach £3.5 billion, while its adjusted operating profit margin rose by 11.7 per cent to clock £414 million – importantly in line with pre-pandemic levels.
Besides the inflation-induced price rise, Primark also expects a drop in the operating profit margin in the second half – all owing to inflation in raw materials and supply chain costs.
The retailer said that these were mitigated in this half year by a favourable US dollar exchange rate and a reduction in store operating costs. It still expects to attain an operating margin of 10 per cent for the entire year.
Notably, Primark’s total sales were 4 per cent lower than pre-pandemic, as the retailer opened 27 stores which increased its selling space.
Primark generated £7.79 billion in 2019, and is known for kidswear, womenswear, menswear, homeware and footwear, amongst others.
