Fashion discounter Primark has doubled its operating profit in the last financial year, while sales grew by 6%. The Irish retailer expects a successful Christmas period.
Impact of weather
In the last broken financial year, which ended on 14 September, Primark’s sales rose 6% to 9.4 billion pounds (11.2 billion euros). Operating profit even went up 51%, to 1.1 billion pounds (1.3 billion euros). The retailer cites strong results in key growth markets such as the US, Central and Eastern Europe. In Northern Europe (including Benelux), sales were up 3%.
Those strong results give the retailer a lot of confidence ahead of the important Christmas weeks. ‘We think Christmas is going to be good,’ George Weston, CEO of parent company Associated British Foods, told Reuters. According to him, shoppers now have a bit more to spend. He points to the impact of the weather: sales went well in September and most of October but then fell briefly as milder weather kept shoppers from buying coats and knitwear. ‘We’ve never seen such a reaction to weather previously. Our shopper spends her money when she needs to, not in anticipation of needing something.’
