Associated British Foods expects its operating income to drop 30 million pounds (41 million euro) for the full fiscal year, but that would have been much worse if its Primark clothing chain had not performed so well.
According to ABF, Primark's turnover will grow 13 % when its fiscal year ends on 12 September 2015. When all is said and done, the chain will have contributed more than half of the British group's total profit. The bulk of that turnover growth comes through store openings, including in the Netherlands, Spain and Belgium. All in all, Primark opened nearly 100,000 sqm of store space last year.
The like-for-like turnover growth will drop from 4.5 % to 1 % for the entire year, while its profit margin has also dropped because of an increased number of promotions.
Primark's first American store will open on Thursday in Boston and it should add another store in Philadelphia before the end of the year, bringing the total number of stores up to 293. For its next fiscal year, it intends to add another range of stores, including 5 in the United States and a first one in Italy.