Value clothing giant Primark has reported tough trading overseas, prompting it to cut sales growth expectations and hit profitability.
Primark, owned by ABF, achieved UK sales growth of 3% in the 16 weeks to January 3, when like-for-likes advanced 1.7% “in a difficult clothing market”.
However, in continental Europe, Primark’s like-for-like sales slid 5.7% and in the US, “the retail environment was volatile, which impacted consumer sentiment and footfall”.
ABF reported: “Overall, Primark’s sales growth in the period was below our previous expectations, and we now expect Primark’s sales growth in the first half of 2026 to be in the low single digits. In a difficult trading environment, we significantly increased markdowns to manage inventory levels effectively, which impacted profitability.
“We have a broad range of initiatives in place and planned for the coming months, which we expect to drive improved sales and profitability, particularly in Europe.
“However, if Primark’s current sales trends were to continue in the second half, we would expect the adjusted operating profit margin for the full year to be approximately 10%, similar to the first half, as we continue to invest in growth. It should be noted that in the first half of 2025, we had a non-recurring benefit to profit of £20m.”
ABF chief executive George Weston said: “Primark has had a challenging start to the financial year, with a mixed performance. In the UK, focused actions and investments to strengthen our customer proposition have driven improved trading and market share gains, while trading has remained weak in continental Europe.
“In a challenging consumer environment, our focus is on factors within our control, including initiatives now underway in Europe aimed at improving performance. We are also making good progress to deliver Primark’s medium and longer-term growth opportunities.”
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