We use first party and third-party Cookies to help us understand Website usage and to improve the content and offerings and to provide you advertising, analytics and other purposes related to your navigation habits. If you continue scrolling, we consider you accept the policy. You can read more about our cookie policy.


The global fashion business journal

Jan 28, 20208:26pm

Primark expects openings to drive sales, but margins to suffer

The owner of the Irish chain expects margin for the full year to be “only a small reduction” on that achieved last year, on a lease-adjusted basis.

Dec 6, 2019 — 4:47pm
Mds
Related topics
Save

Primark expects openings to drive sales, but margins to suffer

 

 

Primark will keep driving AB Foods’s sales, but its margins will suffer. The British group held today its Annual General Meeting, where it reiterated the outlook for the full year. Primark’s sales will continue to grow thanks to the expansion of selling space. However, the group expects margin for the full year to be “only a small reduction” on that achieved last year, on a lease-adjusted basis.

 

The effect of a weaker sterling on purchases will be largely offset by cost reductions in both the cost of goods and overheads. The company will continue to expand its selling space this year, with the most stores being added in France and Spain.

 

Since the year end, Primark has opened three new stores, bringing its total estate to 376 stores trading from 15.8 million sq. ft. Looking further ahead, the company has “a strong pipeline of quality sites”

 

 

 

 

AB Food also insisted that “our businesses have completed all practical preparations for Brexit and contingency plans are in place should our businesses experience some disruption at the time of exit”.

 

In the year ended September 14, Primark grew 4% both at constant and actual Exchange rates, reaching a revenue of 7.7 billion pounds. Adjusted operated profit margin stood at 11.7%, up from 11.3% in 2018.

Advertising
Comment
Participation rules

info@themds.com

 

Validation policy for comments: 

 
MDS does not perform prior verification for the publication of comments. However, to prevent anonymous comments from affecting the rights of third parties without the ability to reply, all comments require a valid email address, which won’t be visible or shared.
 
Enter your name and email address to be able to comment on this news: once you click on the link you will find within your verification email, your comment will be published.

0 comments — Be the first to comment
...