UK's Primark sees 7.5% sales increase in H1

Fast fashion retailer Primark's owner ABF Foods has released a trading update for the six months to 27 February 2016. The company states that sales at Primark are expected to be 7.5% ahead of last year at constant currency.

The increase is driven by an increased retail selling pace, and comes after weaker trading in the weeks leading up to and over Christmas, as a result of unseasonably warm weather across northern Europe. Since the January trading update, cumulative like-for-like sales have improved and are now expected to be level with last year in the first half after better trading during the period since then.

France saw strong like-for-like sales, and the impact of new store openings on the like-for-like sales in existing stores in Germany and the Netherlands has eased. Primark also said that early trading at its two new stores in the US have been encouraging and that the range and concept have been well received.

Operating profit margin in the period was better than expected. Since the end of the financial year, retail selling space has increased by 0.3m sqft. As of February 27, Primark will have 299 stores trading from 11.5 million sqft. of retail selling space. In the first half, the company opened a net six new stores, including a flagship, 133,000 sqft. store on Gran Via in central Madrid in October and its second store in the US.

As previously reported on FashionMag.com, Primark is set to open a further six stores in the US later this calendar year, as well as a 70,000 sq ft store in the American Dream shopping mall in New Jersey in calendar 2017. This spring will see its first Italian store open at Arese, north-west of Milan. By the summer of 2017, Primark intends to also open a store in a mall north of Florence.

UK's Primark sees 7.5% sales increase in H1

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