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Associated British Foods (AFB), which owns Primark, has announced that sales at the retailer are expected to be 4% ahead of last year for the 24 weeks to 2 March 2019, driven by increased retail selling space.
The group said the results will be partially offset by a 2% decline in like-for-like sales and added that, with a much higher margin, profit is expected to be “well ahead of the same period last year”.
ABF said the UK “continued to perform well”, and it substantially increased its share of the total clothing, footwear and accessories market, with sales 2% ahead of last year.
Cumulative like-for-like sales have also improved since the January trading update, with the effect of low footfall in November offset by good trading in all other months. Like-for-like sales are expected to be level with last year in the first half.
A statement by AFB read: “Sales in the Eurozone are expected to be 5% ahead of last year, with particularly strong sales growth in Spain, France, Italy and Belgium. Like-for-like sales in the Eurozone are expected to show a decline of 3%.
“In Germany we have strengthened management and plan focused marketing to address trading which continues to be difficult. Preparations are underway to reduce selling space at a small number of German stores in order to optimise their cost base.”
