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Primark, the international fashion retailer, has cut its sales forecast for the year, blaming a weak performance in its main UK market on cautious consumer sentiment.
Associated British Foods, the parent company of Primark, said in a trading report on Thursday that it is now targeting “low” single-digit sales growth for the fashion chain in 2025. That’s down from mid-single-digit growth guidance given in November.
“Trading activity within elements of our customer base was weak as a result of cautious consumer sentiment and a lack of seasonal buying catalyst given the mild fall,” the company said.
ABF, which also owns the Ovaltine and Twinings brands, said Primark had achieved “good growth” in mainland Europe and the US.
But the fashion chain’s sales in the UK and Ireland – which account for almost half of total sales – fell 6 per cent in the 16 weeks to January 4.
The company said shoppers did not buy as much clothing in October and November, but sales picked up again during the key Christmas trading period.
In the UK, like-for-like sales fell by 6.4 per cent, with Primark’s share of the overall UK fashion market shrinking slightly to 6.8 per cent.
Overall, Primark’s total like-for-like sales fell by 1.9 percent.
ABF expects Primark’s adjusted operating profit margin in 2025 to remain broadly at last year’s levels.
He did not change his forecast for the group’s other divisions, which include groceries, ingredients, sugar and agriculture.
