UK's Primark sees modest revenue gain amid higher promotions

In the UK, Primark delivered around 3 per cent sales growth, with like-for-like sales up 1.7 per cent, despite what the company described as a ‘difficult clothing market’ over Christmas. The retailer gained market share, supported by investments in product ranges, sharper pricing, stronger digital engagement and the continued roll-out of Click & Collect. Womenswear performed particularly well, helping underpin the recovery, ABF said in a press release.

Performance in continental Europe remained weak. Like-for-like sales declined around 5.7 per cent, as consumer confidence stayed subdued and Primark’s UK-style improvement initiatives are only now being rolled out across the region.

In the US, Primark continued to expand its store base, helping deliver total sales growth of around 12 per cent, although management noted that footfall and consumer sentiment were volatile. The group also opened its first store in Kuwait during the period through a franchise model, contributing to overall growth.

Despite ongoing store expansion adding around 4 per cent to sales growth, Primark’s overall performance was below expectations, leading the company to forecast low single-digit sales growth for the first half of 2026. To control stock levels in a tough trading environment, Primark increased markdowns, which weighed on profitability, added the release.

Looking ahead, the retailer has launched a broad set of initiatives aimed at lifting sales and margins, especially in Europe. If current trends persist into the second half, Primark’s adjusted operating profit margin for the full year is expected to be about 10 per cent, broadly in line with the first half, as investment in growth continues.

George Weston, chief executive of Associated British Foods, said Primark had a challenging start to the year, with UK improvements and market-share gains offset by weaker European trading, but added that the group remains focused on strengthening the brand’s medium- and long-term growth prospects.

ALCHEMPro News Desk (SG)