Two sun-filled months were enough for Primark to show of some nice numbers in its third quarter. Sales went up by no less than 20 percent, despite a disappointing (because very dreary) April.
Cold and wet spring compensated
Since the start of the year the rise is even bigger at 22%, thanks to an excellent first half of the financial year, when sales of Primark rose 24% due to an immense rise in the number of shops going up to the holiday period. The third quarter of Primark (which ends 22 June) first suffered from the cold and wet month of April, but the better weather in May and June have caused a turnaround.
Parent company ABF does not release growth numbers on a comparable basis, but according to an analyst of Investec Securities the comparable sales should be 2 to 3% higher than in the third quarter of the previous year. That is clearly not as much as the 7 percent for the first six months, but is still considerably more than British competitor Marks & Spencer. They recently announced a drop in comparable sales for the eight quarter running.
On 22 June Primark had 257 locations. The company wants to speed up its expansion in the next fiscal year and it will open its first French shop in Marseille.
“Deeply saddened” by Rana Plaza
In its statement management also looked back on the disaster in Bangladesh, which cost the lives of 1.100 textile workers. One of Primark’s suppliers had a workshop on the second storey of the building.
Primark claims it has donated food to some 1,300 families shortly after the event and has paid short-term financial compensation to more than 3,300 workers in the building irrespective of their employer. It also repeated its intent to help all people affected and who worked for their supplier on the long term.