Value fashion giant Primark has become the latest clothing retailer to report a hit to sales as a result of the warm weather in autumn.
Charles Sinclair, chairman of Primark owner Associated British Foods (ABF), said: “Like-for-like sales are currently below expectation as a result of the unseasonably warm weather.”
However, Sinclair said that the retailer has budgeted for a higher level of mark-downs this year, and consequently “at this early stage in the year Primark’s profit estimate for the full year is unchanged”.
Sinclair, who made the comments at ABF’s AGM today, said Primark’s total sales were up 10% since year end of September 13, driven by store expansion.
Primark is on an aggresive expansion drive, with another 1m sq ft of space due to be added by the end of this financial year. The retailer’s total store portfolio stands at over 10m sq ft globally.
In November the retailer posted a 17% sales rise in its latest annual results, up to just under £5bn, with profits up 30% in the 12 months to the end of September.