Primark‘s owner, AB Foods, has raised its profit expectations thanks to a double-digit sales growth in the past quarter. Fashion discounter Primark saw its sales go up 13 % to two billion pounds.
Higher prices
Primark itself referred to the fact that on average it was able to charge considerably more for its clothing, even though the chain is known for its low prices. However, according to the company, the price increases were necessary to cover increased costs due to inflation and rising raw material prices. Nevertheless, demand for Primark products seems to remain high, especially in the larger stores in city centres.
As major factors in last quarter’s increased sales, Primark cited summer clothing and nightwear, but most of all the Irish chain says it is reaping the benefits of its vastly improved website, The Guardian reports. Primark opened four new stores in the twelve weeks ending 27 May (one each in Italy, Slovakia, Spain and the United States) and announced that a Primark will soon open in Texas for the first time.
Profits also up
The food division of AB Foods, best known for brands like Twinings tea, even experienced an 18 % increase in turnover. Total group sales went up 16 %, to 4.72 billion pounds (5.51 billion euros).
For the full fiscal year, Primark expects the good results to continue, with operating profit slightly higher than a year earlier.
