Primark cuts sales outlook after UK struggles

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Primark, the global fashion retailer, has cut its sales forecast for this year, blaming poor performance in its core UK market on cautious consumer sentiment.

Associated British Foods, the parent of Primark, is now targeting “low” single-digit sales growth for the fashion chain in 2025, in a business update on Thursday. .

“Business in our buyers has been weak due to caution and lack of purchasing logic among consumers given the autumn weather,” he said.

ABF, which owns the Ovaltine and Twining brands, said Primark had achieved good growth in continental Europe and America.

But the fashion chain’s like-for-like sales in the UK and Ireland – which account for around half of the total – fell by 6 per cent in the 16 weeks to January 4.

The company said consumers did not buy as much clothing in October and November, but sales increased during the key Christmas shopping season.

Like-for-like sales in the UK fell by 6.4 per cent, while Primark’s share of the overall UK fashion market fell slightly to 6.8 per cent.

Overall, Primark’s overall like-for-like sales fell by 1.9 per cent.

ABF in 2011 Primark’s adjusted operating profit margin in 2025 is expected to remain broadly similar to last year.

Other segments of the group related to grocery, inputs, sugar and agriculture did not change its forecast.