Primark sales rise, doesn’t plan further prices increases
Primark has reported a 43 percent year-over-year increase in adjusted sales.
The fast-fashion giant made sales of 7.7 billion pounds in the 52 weeks to September 17, up from the 5.6 billion pounds it reported a year earlier.
It came as shoppers swarmed back to physical stores following the end of lockdown restrictions which heavily impacted the company the prior year.
Primark said UK like-for-like sales and market shares are now “broadly in line” with pre-Covid levels, while like-for-like sales are weaker in Continental Europe due to cautious consumer sentiment.
The fashion retailer widened its adjusted operating profit to 756 million pounds from 321 million pounds a year earlier.
In terms of trends, Primark said nightwear and loungewear sold well throughout the year, which has continued into the autumn-winter season.
There has also been a “particularly strong” demand for “novelty prints and cosy textures including fluffy pyjamas and thermals with both velvet plush leggings and the ‘Snuddie’”.
On a group level, parent company AB Foods reported a 22 percent increase in adjusted revenue to 17 billion pounds, while its adjusted operating profit increased 42 percent to 1.4 billion pounds.
But AB Foods CEO George Weston warned of “substantial and volatile input cost inflation” in the year ahead, which he said will be the group’s “most significant challenge”.
He continued: “Primark has faced significant input cost inflation and sharply moving currency exchange rates.
“We have decided to hold prices for the new financial year at the levels already implemented and planned and to stand by our customers, rather than set pricing against these highly volatile input costs and exchange rates.”
The group expects adjusted operating profit and adjusted earnings per share for the year ahead to be lower than the financial year just closed.