Curtis Wool Direct

Primark sales hit by warm autumn weather

Buy and sell wool 24 hours a day, 7 days a week from anywhere in the world. Click here.

Sales at Primark took a hit in autumn following a spell of warmer than usual weather, but the fashion chain expects profit growth to pick up this year. Like-for-like sales – which ignore new stores – at the chain are set to fall 1% in the 24 weeks to 3 March. Primark’s owner, Associated British Foods (ABF), said sales were hit by “unseasonably warm weather” in October.

However, it says profit growth is set to accelerate in the second half of the year, partly due to the weaker dollar.

As well as the UK, Primark operates across Europe and has been expanding in the US.

Despite sales falling across Primark as a whole, like-for-like sales in the UK were up 4% where the chain performed “very well”, ABF said.

The company also said underlying sales at Primark rose 1% in the 16 weeks to 3 March, and the chain saw record sales in the week before Christmas.

ABF also expects profit margins at the fashion chain to increase in the months ahead.

“This will be driven by better buying and some benefit of the recent weakness of the US dollar on purchases which will more than offset an expected return to a more normal level of markdowns, compared to the very low level achieved last year,” the company said.

Sofie Willmott, senior retail analyst at GlobalData, said Primark was “stealing share from its High Street competitors including New Look and H&M whose customers have become disillusioned with lacklustre product ranges”.

She also pointed out that Primark has not been held back by its lack of online sales.

As well as Primark, ABF also has sugar, grocery and agriculture businesses, with the grocery unit owning brands such as Twinings, Ovaltine, Silver Spoon, and Jordans cereals.

ABF said it expected half-year operating profits for the group to be similar to levels seen last year.

While most of its businesses had seen revenues rise, its sugar unit’s revenue and profit is expected fall, mainly as a result of “significantly lower” EU prices which, ABF said, had affected its UK and Spanish businesses.

 

Source: BBCNews

Share This Article

America
Argentina
Australia
Belgium
Britain
Canada
France
Germany
Hungary
India
Italy
Malaysia
New Zealand
Russia
South Africa
Spain
Turkey
Uruguay
Wool Promotion
Buy Alpaca from
Mohair
Wool & Specialty Fibre
Tops & Yarn Dyeing
Wool & Top Treatment 
Buy Yarn From
Textile Machinery
Wool Magazines

Interested in reaching buyers in China? Advertise in wool2yarn China magazine and reach major importers of wool and speciality fibre, topmakers, spinners, weavers and textile companies in China, in their own language, breaking down the language barrier. This publication is circulated to 5000 major textile companies in China, Hong Kong and Taiwan and is a buyer’s guide and information source for the year ahead. See More.


Reach buyers in 58 countries – advertise in wool2yarn global magazine. Published once each year (September) it is circulated to over 5000 textile companies. Readership includes importers of wool and speciality fibre, topmakers, spinners and weavers, manufacturers of yarn, knitwear, carpet, and blankets, producers and importers of fabrics, bedding products, garment manufacturers, and brands and retail chains. See more.

Wool Reports
Buy Wool, Wool Tops, Yarn Online
Wool Testing
Wool Logistics
Wool Grease
Wool Products Online
Second Hand Textile Machinery