UK's Primark's sales to rise 1% in H2, like-for-like to decline 2%

Trading in the UK and Ireland showed a good sequential improvement on H1, reflecting the company’s strong product offer, particularly in womenswear, and increased digital engagement, supported by more favourable market conditions. It reported a more subdued consumer environment in Europe, where trading was weaker, while performance in the US was strong. Looking ahead, it currently expects the consumer environment to remain uncertain.

The company continues to expect adjusted operating profit margin for the full year to be broadly in line with last year, reflecting Primark’s strong operating model. As expected by the company, the adjusted operating margin in H2 will be below H1, mainly due to the phasing of one-off items which benefitted H1. Focused cost optimisation and efficiency savings supported a step up in investment across product, brand and digital initiatives, ABF said in a press release.

In the UK and Ireland, overall sales of the company are expected to grow around 1 per cent in H2, a good sequential improvement on H1 and Primark’s market share increased from 6.6 to 6.8 per cent. Sales grew 1 per cent in Q3, with strong Easter trading, and are projected to grow 1 per cent in Q4, despite lapping double-digit sales growth in the last weeks of the prior financial year.

In Spain and Portugal, ABF sales are expected to grow around 2 per cent in H2. Sales were broadly flat in Q3 and are projected to grow 3 per cent in Q4. Primark outperformed a weaker Spanish clothing market in H2 and had a good contribution from new store openings. In France and Italy, sales are expected to decrease around 4 per cent in H2 in a weaker consumer environment. Sales declined 4 per cent in Q3 and are projected to decline by the same rate in Q4.

Central and Eastern Europe are expected to see strong growth of 9 per cent in H2 as sales grew 17 per cent in Q3 and are projected to grow 4 per cent in Q4. Northern Europe sales are projected to decline 2 per cent amid weakness in Germany.

In the US, sales are expected to grow around 23 per cent in H2, with growth of 21 per cent in Q3 and projected growth of 24 per cent in Q4.

Across the group, 15 new stores were opened in H2 alongside 22 refits. Preparations are underway for franchise openings in the Middle East, starting with Kuwait in October 2025 and Dubai in early 2026.

Primark’s adjusted operating profit margin is expected to remain broadly in line with last year, underpinned by cost optimisation and efficiency savings despite one-off H1 benefits not recurring in H2. The company noted continued uncertainty in the consumer environment, added the release.

“I am pleased with how the group has performed in the second half of our financial year in what continues to be a challenging environment, characterised by consumer caution, geopolitical uncertainty and inflation. Primark delivered improved trading in the UK and strong sales growth in the US, while trading on the continent was softer in a weaker consumer environment. In our food businesses, overall trading in the second half was in line with our expectations,” said George Weston, chief executive at Associated British Foods.

The company said that it is scheduled to announce its annual results for the 52 weeks to September 13, 2025, on November 4, 2025.

ALCHEMPro News Desk (SG)