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Primark, the international fashion retailer, has cut its sales forecast for this year, blaming a weak performance in its core UK market on cautious consumer sentiment.
Associated British Foods, the parent of Primark, said in a trading update on Thursday it was now targeting “low” single-digit sales growth for the fashion chain in 2025. This is down from the mid-single-digit growth guidance provided in November.
“Trading activity within elements of our shopper base was weak as a result of cautious consumer sentiment and a lack of seasonal purchasing catalyst given the mild autumn weather,” said the company.
ABF, which also owns brands Ovaltine and Twinings, said Primark had delivered “good growth” in continental Europe and the US.
But the fashion chain’s like-for-like sales in the UK and Ireland — which account for almost half of the total — fell 6 per cent in the 16 weeks to January 4.
The company said shoppers did not buy as many clothes in October and November, but sales had picked back up during the key Christmas trading period.
In the UK, like-for-like sales fell 6.4 per cent, with Primark’s share of the total UK fashion market decreasing slightly to 6.8 per cent.
Overall, Primark’s total like-for-like sales declined 1.9 per cent.
ABF expected Primark’s adjusted operating profit margin in 2025 to remain broadly in line with last year’s level.
It did not change its forecast for the group’s other divisions, which span groceries, ingredients, sugar and agriculture.
