Primark poised to post 16% full-year sales growth

Primark’s owner ABF expects the value retailer to report a 16% increase in full-year sales.

On a constant currency basis, it expects sales to rise 17% over the year.

The company attributed the sales gains to an increase in retail selling space and like-for-like sales growth, driven by a highly successful AW and SS ranges. It said sales over the Christmas period were excellent and were boosted in the third quarter by warm weather, especially n the spring and summer, which led to good trading across the group and outstanding results in Spain.

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The company is forecasting 4.5% like-for-like sales growth for the year.

Operating profit of 13.1% in the first half was higher than last year, reflecting the benefit of warehouse and distribution efficiencies and lower freight rates. These benefits continued into the second half, and with the strong trading over the summer resulting in a low level of markdowns, the company expects the full-year margin to be slightly higher.

The brand opened 1.4 million square feet of selling space in 28 stores. Over the financial year, it closed seven smaller stores, primarily where larger, better located, premises became available in the same city, resulting in a net increase in selling space of 1.2 million square feet.

“We have a very strong pipeline of new stores in Europe extending over a number of years. We expect the increase in selling space in the next financial year to be a little less than 1 million square feet to be followed in the autumn of 2015 by a strong programme of openings,” the company said.



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