Associated British Foods said on Friday trading to date at its Primark fashion business had been ahead of expectations in its new financial year, with improved like-for-like sales compared to the fourth quarter of its last year.
It said Primark, which trades from 400 stores in Europe and the United States but does not have an online operation, was managing disruption in its supply chain by prioritising products most in demand with the support of its logistics providers. Primark (which trades as Penneys in Ireland) has stock cover on the vast majority of lines for the important Christmas trading period.
The group noted the incidence of Covid-19 cases is increasing and the public health measures taken to date in Primark’s markets are mainly restrictions in trading hours in the Netherlands, the requirement for vaccine passes in Germany and the closure of five stores in Austria.
Margin
Primark’s margin in the year to date had also been ahead of expectations.
“Looking ahead we currently expect Primark sales to be significantly better than sales in the comparable period in the last financial year, from December 2020 to April 2021, when the estate was largely closed,” the group said in a statement ahead of its annual shareholders’ meeting.
AB Foods also owns major sugar, grocery, ingredients and agricultural operations, which it said had traded in line with expectations so far in the new year.
It said it continued to expect “significant progress” at both the half and full year, in adjusted operating profit and adjusted earnings per share. – Reuters
