Primark posts sales growth

Budget fashion retailer Primark has revealed sales growth of 16 per cent year-on-year in its results published today, despite the difficult retail conditions currently being felt on the British high street. The retailer, owned by Associated British Foods, described the like-for-like sales growth as ‘good’ in the 16 weeks to January 7, without publishing a figure. Adding that the Christmas period had proved ‘particularly strong after a slower start to the financial year as a result of the unusually warm autumn’ in the statement.

Operating margins were lower in the same period last year due to the higher cotton costs; however, the report noted that cotton prices have fallen ‘somewhat’ from their high point last year and the group expected to see the benefit of lower input costs over the next six months.

Primark also continued with its expansion over the quarter adding an extra 0.5 million sq ft of trading space, with nine new stores: two in Spain, three in Germany, one each in Portugal and the Netherlands, and two in the UK including its flagship store in Scotland, which opened on Princes Street in Edinburgh just before Christmas.

Further openings are planned for the second half including three stores in Spain, in March.

Image: Primark SS12




http://www.fashionunited.co.uk/fashion-news/fashion/primark-posts-sales-growth-2012011913876