Primark, an Irish fast fashion retailer headquartered in Dublin, has recorded a surge in six-month sales. However, like-for-like sales (a measure of growth in sales, adjusted for new or divested businesses) took a plunge.
As per a pre-close trading update for the half-year period ending March 2, Primark’s retail sales are likely to be 4 percent more than that of last year, owing to amplified retail selling space.
However, this would be partly offset by a 2 percent drop in like-for-like sales.
Further, Primark UK sales are expected to be 2 percent ahead of last year, while like-for-like sales are probable to remain flat.
The even like-for-like sale is because of the low footfall in November 2018, the company’s parent stated.
Meanwhile, sales in the Euro zone are likely to be 5 percent more, thanks to growth in Spain, France, Italy and Belgium markets. The retailer will continue to do well in the USA. Primark has also cut its operating loss in the country.
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However, Primark’s like-for-like sales in the Eurozone are also expected to dive 3 percent.
Primark’s retail selling space increased by 300,000 square feet since the financial year end and by March 2, 364 stores will be trading from 15.1 million sq ft compared to 14.3 million sq ft a year ago.
Furthermore, AB Foods is probable of adding 900,000 square feet of new selling space to its retail business in the next six months.