“We delivered good growth across our key growth markets, Spain, Portugal, France, Italy, Central and Eastern Europe and the US. Sales in the UK and Ireland declined in the period, with growth in like-for-like sales over the key Christmas period more than offset by weaker autumn trading in a challenging retail environment”, summed up the company in a statement.

First Quarter

In the three months to the 4^th of January, Primark's sales increased by 1.9% on a constant currency basis and decreased by 0.4% on an actual currency basis to 3.36 billion British pounds (4.0 billion euros), as compared to the same period last year.

In the UK and Ireland, which represented approximately 45% of total sales, sales declined by 4% in the first quarter, with like-for-like sales down 6.0%, on a comparable basis to the same period of last year. Particularly in the UK, sales declined by 4%, with like-for-like sales down 6.4%.

The company said that this performance was the result of a weak October and November, impacted by mild weather and cautious consumer sentiment, followed by stronger sales and like-for-like growth in December over the key Christmas trading weeks.

On the contrary, in other markets, the retailer performed well in the first quarter. In Spain and Portugal, which accounted for approximately 18% of total sales, sales were up by 9% year-on-year, and, in France and Italy, which accounted for approximately 16% of sales, sales were up by 5% year-on-year. These figures reflect underlying growth and were influenced by a strong contribution from recently opened stores.

Primark’s sales in Northern Europe, which represented approximately 13% of total sales, grew by 3% year-on-year in the first quarter, driven by the recent restructuring of the retail footprint. In Central and Eastern Europe, which represented approximately 3% of sales, sales grew by 22% year-on-year, with recent store openings in the Czech Republic and Poland.

In the US, which accounted for approximately 5% of sales, sales increased by 17% in the first quarter, on a comparable basis to the same period of last year, as Primark continues to make good progress with store rollouts, opening two new stores in the period. “We now have 29 stores in total and an additional 17 leases signed”

Associated British Foods said that is now targeting low-single-digit sales growth for Primark in 2025. However, “despite the market conditions in the UK and Ireland, we remain confident in the Primark proposition and continue to focus on initiatives across product, digital and brand to drive underlying growth”. The retailer’s adjusted operating profit margin is expected to be broadly in line with last year, as gross margins continue to improve and good cost management offsets inflation and increased investments.