"Overall, Primark's sales growth in the period was below our previous expectations and we now expect Primark's sales growth in the first half of 2026 to be in the low single digits."
"In a difficult trading environment, we significantly increased markdowns to manage inventory levels effectively, which impacted profitability."
"Primark has had a challenging start to the financial year, with a mixed performance. In the UK, focused actions and investments to strengthen our customer proposition have driven improved trading and market share gains, while trading has remained weak in continental Europe. In a challenging consumer environment, our focus is on factors within our control, including initiatives now under way in Europe aimed at improving performance."
Associated British Foods, owner of Primark, reported a sharp sales decline and issued a profit warning after difficult Christmas trading. Shares fell 12% and like-for-like sales dropped 5.7% across Europe in the 16 weeks to 3 January. AB Foods now expects Primark's sales growth in the first half of 2026 to be in the low single digits. The company increased markdowns to manage inventory, which reduced profitability. Trading improved in the UK due to targeted actions and investments, while continental Europe remained weak. The company is implementing initiatives in Europe to improve performance and is focusing on controllable factors.
Read at London Business News | Londonlovesbusiness.com
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