Irish fashion chain Primark has seen its first quarter turnover grow 7 % at level exchange rates and 9 % taking the fluctuations into account. Analysts however had expected faster growth.
Growing store space
Analysts had estimated a 10 % turnover growth, but according to Primark’s parent company, Associated British Foods, the growth was stunted by unusually warm European weather. Nevertheless, it talks of record turnover in the week leading up to Christmas. There was a beautiful like-for-like turnover and increased market share in the United Kingdom and it claims to be on the right path in the United States.
In the past quarter, Primark’s store space grew another 27,000 sqm. The chain currently consists of 350 stores, including three new ones in Germany, one in the United Kingdom and one in Spain. The discount chain expects to add another 100,000 sqm in store space in the current fiscal year.
The slower turnover growth did prompt analysts to question whether Primark needs an online shop, considering the fact it can still generate the most growth in that area. H&M also presented weak results recently, because it failed to attract online customers.