Associated British Foods will be satisfied as its store chain, Primark, has boosted its sales once again in the 16 weeks leading up to 3 January 2015. Compared to the year before, it has grown its turnover 15 %.
Lower profit margin
Its turnover increase was mostly because of new store openings and "exceptional" results in France, as the warmer weather has also impacted Primark's sales negatively. If exchange rates are taken into account, alongside the strong British pound, Primark's turnover increase dropped to 12 %.
"Like-for-like sales in the autumn were affected by the unseasonably warm weather but trading over the last five weeks, including Christmas, was strong. Operating profit margin in the period was in line with expectations, that is, lower than last year as a result of a higher level of markdown", APB explained in a statement.
For the current fiscal year, Primark intends to add another 93,000 sqm of store space. This will be achieved in two separate ways: new stores will be opened or it will gain additional space through expansion in Germany, Belgium and the United Kingdom. It has also signed 8 contracts for stores in the United States, with a planned launch near the end of 2015.