Primark’s parent company, Associated British Foods has issued its trading update for the 16 weeks to 4 January 2025.
Primark’s sales grew 2%, with key growth markets being Spain, Portugal, France, Italy, Central and Eastern Europe and the US. Sales in the UK and Ireland, however, declined in the period, with growth in like-for-like sales over the key Christmas period more than offset by weaker autumn trading in a challenging retail environment.
In womenswear, performance was most impacted by weaker sales in cold weather and seasonal clothing, however, Primark saw strong sales of performance, leisure and nightwear. Sales in both menswear and kidswear grew in the period.
The Christmas product range traded well and it had continued good growth from the Rita Ora, Paula Echevarría and Kem collections, as well as in the licensed products. Markdowns during the period were managed effectively, which resulted in good inventory levels and supported good gross margin delivery.
Spain and Portugal accounted for approximately 18% of sales, with sales growing 9%; France and Italy (which accounted for 16% of sales), grew by 5%, with France driven by recent store openings; Central and Eastern Europe (which accounted for 3% of sales) saw sales grow 22%, driven by recent store openings; while in the US (which accounted for 5% of sales) sales grew 17%. Primark said that it continued to make good progress in the US, opening two new stores in the period, including its first store in Texas; it now has 29 stores in total and an additional 17 leases signed.
In the UK and Ireland, which accounted for approximately 45% of sales, sales declined 4% with like-for-like sales down 6.0%. In the UK specifically, sales declined 4% with like-for-like sales down 6.4%. During the period, the overall clothing retail market in the UK declined.
Primark’s trading pattern in the period was marked by a weak October and November, which had a strong comparator, followed by stronger sales and like-for-like growth in December over the key Christmas trading weeks. During the period, it opened one new store, relocated one store and right-sized one store in the UK. It also extended one store in Ireland. Its online participation through Click & Collect in the UK performed well as it drove increased customer awareness and made more of product ranges available to more customers, particularly those who shop in smaller stores. It made further progress with the Click & Collect rollout, which is now in 113 stores.
In Northern Europe, which accounted for approximately 13% of sales, sales grew 3% and like-for-like sales grew 4.9%.
Overall, Primark said that it continued to make good progress with the execution of its store roll out programme in Europe and the US, which contributed around 4% to total sales growth in the period.
Overall, Primark’s total like-for-like sales declined by 1.9%, reflecting lower sales in the UK and Ireland as outlined.
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