Primark owner Associated British Foods has said the fashion retailer will not be implementing any further price increases next year beyond those already actioned and planned.
The group said Primark’s total sales for the period are expected to come in at £7.7 billion, which will be 40% ahead of the previous year at constant currency.
ABF attributed the uplift to the ending of Covid-19 related restrictions and the resumption of “more normal” customer behaviour. It said a continued improvement in its UK performance was offset by weaker than expected trading in continental Europe in its fourth quarter.
Due to recent movements in currency and energy prices, and the commercial decision to limit further price increases next year, the group said it expects Primark’s profit margin for next year to be lower than the operating profit margin of 8% forecast for the second half of the current financial year.
Primark is aiming to grow its store estate to 530 by the end of its 2026 financial year with the vast majority of outlets being in its growth markets of the US, France, Italy and Spain.
