Associated British Foods confirmed a 2.7% drop in underlying sales at its Primark clothing business during the key Christmas quarter, matching earlier profit-warning estimates. The 16-week trading update showed a stark regional split, with U.K. and Irish sales rising 1.1% while continental Europe, representing 49% of revenue, declined 5.7%.
The group’s overall revenue of £6.76 billion held steady, but the Primark weakness underscores challenges for the value-fashion retailer. Its U.S. operations, a smaller segment, were flat. This performance follows a profit warning earlier this month, signaling the high-stakes holiday season was tougher than expected for the fast-fashion giant.
Investors will now watch how Primark navigates the spring season without the heavy discounting that often follows a poor Christmas. The company’s next major update, its interim results on April 21, will be critical for assessing whether the sales pressure is easing or if margin compression is coming.
Source: All News · Summarized by HeadlinesBriefing