Yahoo Finance Primark sales set to surge 60% as lockdown fades
Sales at value fashion giant Primark are set to jump 60% as COVID restrictions are lifted, owner Associated British Foods (ABF) said.
Primark sales for the 24 weeks to 5 March were expected to be over 60% ahead of last year at constant currency with an operating profit of 11%.
Primark owner ABF (ABF.L) said in its interim results for the six months to 5 March that the group is is on track to surpass pre-COVID levels of sales and operating profit.
The better outcome reflected all Primark stores remaining open and trading throughout the period except for short periods in Austria and The Netherlands. But sales are still 4% below pre-pandemic levels.
Read more: Primark to cut 400 jobs in UK stores
Luggage and swimwear have performed well in recent weeks, as shoppers look ahead to the holiday season after two years of travel restrictions.
Sales across the company’s UK stores are “well ahead” of last year as shoppers flocked back.
AB Foods' share price was down almost 3% on Monday.
“UK like-for-like sales have improved and are expected to be 9% below two years ago, and total sales are expected to be 8% below two years ago,” the company said.
“Stores in retail parks and town centres continue to outperform destination city centre stores, with like-for-like sales in retail parks ahead of pre-COVID levels.”
A number of Primark store closures freed up around £650m ($870m). ABF has opened 27 new Primark stores over the past two years.
Read more: Greggs to launch new fashion range at Primark
The effect of inflation on raw materials and the supply chain in Primark during this half has been mitigated by a reduction in store operating costs and overheads and a favourable US dollar exchange rate.
The group said all its food businesses had experienced increasing inflationary pressures in raw materials, commodities, supply chain and energy.
AB Foods owns major sugar, grocery, ingredients and agricultural businesses. Its grocery brands include Twinings tea, Jordans cereals, Kingsmill bread and Ovaltine drinks.
