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Global fashion retailer Primark blamed cautious consumers in its core UK market when it cut its 2025 sales forecast.
Associated British foodsPrimark's parent company, Primark, said in a trading update on Thursday that it is now targeting “low” single-digit sales growth for the fashion chain in 2025. This is below the single-digit growth guidance given in November.
“Trading activity among items within our shopper base was subdued as a result of cautious consumer sentiment and a lack of seasonal buying incentives due to mild fall weather,” the company said.
ABF, which also owns the Ovaltine and Twinings brands, said Primark had achieved “good growth” in mainland Europe and the US.
Overall, Primark's total sales rose by almost 2 per cent to £3.3bn in the 16 weeks to January 4, supported by new store openings. But like-for-like sales, a measure that excludes the impact of store openings and closings, fell 1.9 percent in the same period.
The company said shoppers did not buy as many clothes in October and November, but sales rebounded during the key Christmas trading period.
The fashion chain's like-for-like sales in the UK and Ireland – which account for almost half of the total – fell more sharply, falling by 6 per cent over 16 weeks. Primark's share of the total UK fashion market fell to 6.8 per cent.
ABF shares fell 0.4 percent in early trading.
ABF expects 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 include grocery, ingredients, sugar and agriculture.
