2 weeks ago
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Parent company Associated British Foods (ABF) said Primark's strong revenue growth reflected investment in recent years to enhance its store experience and to increase its use of effective digital customer engagement.
Performance and leisurewear, knitwear and nightwear led to growth in womenswear, the retailer added.
In the UK and Ireland, Primark sales were up 2% against the previous financial year. The UK and Ireland accounted for 47% of its sales and Primark maintained its market share in the UK at 6.7%.
In both markets, challenging weather impacted footfall during the first half of the year, particularly in April and June. However, the retailer said it had a “very encouraging start” to sales of its Autumn/Winter ranges, with strong like-for-like growth in both markets in the last weeks of the financial year.
Operating profit rose 53% to £1.1m during the 52-week period, compared with £717m in the previous year.
Adjusted operating profit for the full year rose 51% to £1.1m and adjusted operating profit margin stood at 11.7%, up on the previous financial year’s 8.2%.
Primark said this was largely due to lower material costs and reduced realised freight costs, as well as the annualisation of prior year price increases.
Primark opened three new stores in the period. The retailer expects click and collect services to be available in all stores in England, Wales and Scotland by the end of 2025.
George Weston, chief executive of ABF, said he was pleased with Primark’s significant recovery in margin.
“Our low-cost model is as strong as ever, as we maintain our relentless focus on delivering great-value clothing and a unique store experience. This is underpinned by a step up in investment in strategic initiatives across digital, product and brand.
“Significant white space for new stores remains across Europe and the US, which we expect to help drive sustainable growth over the medium and long term.”
English (US) ·