/Primark warns of “challenging” trading ahead of AGM – Retail Gazette

Primark warns of “challenging” trading ahead of AGM – Retail Gazette

Primark’s parent company Associated British Foods has warned that a “tough retail market” led to difficult trading for the fashion retailer throughout November.

AB Food chairman Michael McLintock is due to address shareholders at the company’s annual general meeting today, stating that “during November Primark trading was challenging”.

Despite this, he added that “careful inventory management and improved margins” meant its profit expectations remained unchanged.

McLintock was also adamant Primark would continue its expansion, opening its 364th store in Belfast tomorrow, taking its total selling space to 15.1 million sq ft.

In its last financial year, which ended on September 15, Primark saw like-for-like sales increase 1.2 per cent, while operating margins rose from 10.4 per cent to 11.3 per cent year-on-year.

The news sent AB Foods share prices dropping over two per cent this morning.

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