Primark Raises Full Year Outlook After Key Sales Expectations
LONDON (Reuters) – Associated British Foods on Thursday raised the full-year profit outlook for its Primark fashion business after sales at stores that reopened after COVID-19 closures in its last quarter were exceeded management expectations in all markets.
The group said Primark’s third-quarter revenue was 1.6 billion pounds ($ 2.2 billion) through June 19 after all stores reopened and opened seven new stores, up from 0.6 billion pounds in the same period last year.
He said a number of new sales records have been set and like-for-like performance has improved significantly over previous periods of the pandemic, reflecting an increase in both confidence and willingness to spend customers.
Primark’s comparable sales grew 3% year over year in the quarter, although volatility remained high and performance varied by region depending on the degree of COVID-19 restrictions still in place.
The group said data for the entire UK apparel market, which includes online sales, for the seven-week period after the reopening showed both volume and value share gains for Primark on a two-year basis.
AB Foods now has higher expectations for Primark’s last quarter sales and its full-year sales forecast has increased accordingly.
Primark’s adjusted operating profit for fiscal year 2020-21, before repayment of government retention program funds, is now expected to be broadly in line with 2019-2020, compared to previous guidance of ” A little lower”.
AB Foods also has major sugar, grocery, agriculture and ingredients businesses.
Its forecast for the group’s adjusted operating income for the full year is now in line with those of last year.
($ 1 = 0.7243 pounds)
(Reporting by James Davey; Editing by Kate Holton)