Primark parent company, Associated British Foods, has reported that sales at the fashion retailer rose by 7% at constant currency in the 40 weeks to 18th June, driven by increased selling space.
Since the beginning of the financial year Primark’s retail space has increased by 0.8 million square feet, from the 18th June there were 310 stores trading from 12 million square feet.
However, like-for-like sales in the last 16 weeks were adversely affected by “unpredictable weather patterns”, with an especially cold April followed by a return to more seasonal weather in May.
During its third quarter Primark opened 11 new stores in the UK, France, Portugal, Italy, Germany, the Netherlands and the US. It said the relocation of its UK warehouse capacity from Magna Park to Islip in Northamptonshire is expected to be finished by September.
Commenting on the EU referendum in the UK, ABF said: “The UK referendum decision to leave the EU has created uncertainty in the business environment and financial markets.
“Sterling has weakened significantly since the referendum vote. In our next financial year, these rates would have both positive and negative effects on profit.”
The company said there would be an adverse transactional effect on the profit margin on Primark's UK sales, which currently account for half of its turnover.
However, its plans for Primark's expansion remain unchanged.
