British fast fashion retailer Primark has posted a 7.9 per cent increase in sales to £ 3.3 billion at constant currency in the 16 weeks to 6th January which included strong Christmas trading. Like-for-like sales increased by 2.1% as a result of higher average selling prices.
Owner of Primark, Associated British Foods, reported exceptionally high sales of both men’s and women’s apparel, notably in the performance wear, leisure, and bespoke clothes categories. Additionally, its Rita Ora line and Christmas collections did well.
Sales in cold weather categories started the period sluggish due to unexpectedly warm weather, but they picked up once the latest cold snap arrived.
Overall sales in the UK increased by 4.5% and, on a like-for-like basis, by 3.8%. In the meantime, like-for-like sales increased by 1.3% and overall sales in Europe increased by 8.1%.
Primark, according to ABF, had good supply levels at the end of the period, but it is still keeping an eye on the Red Sea scenario. It does not currently anticipate a major interruption to its supply chain.
It added, “We feel more confident in the delivery of the Primark adjusted operating margin in this financial year, driven by a further improvement in product gross margin. This should insulate us well against potential additional costs of supply due to the disruption in the Red Sea should they arise.” Primark opened eight new stores in the period across France, the US, Spain and Poland.
