International News

Primark Banks on Europe as UK Gains Strength

May 4, 2017

Primark’s owner ABF Associated British Foods delivered a 36% rise in H1 profit and was upbeat about the rest of the year as the Primark budget fashion business continued to power ahead. Primark’s retail revenue rose to £3.222 billion, a 21% rise at actual exchange rates and a still-strong 11% rise currency-neutral. Operating profit was up 3% to £323 million. Primark performed well in the UK and delivered sales there 7% ahead of last year with a strong increase in its share of the total clothing market. This was driven by 2% growth in comparable sales and an increase in selling space. In continental Europe, sales and market shares increased strongly. In the Netherlands, where sales densities are high and some stores are over-trading, the company added 32% more retail selling space over the last year, including a flagship store in Amsterdam. Consequently, total sales in the Netherlands increased by 18% but comp sales declined.