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Primark, the international fashion retailer, has blamed cautious consumers in its core UK market as it cut its sales forecast for 2025.
Associated British Foods, the parent of Primark, said in a trading update on Thursday it was now targeting “low” single-digit sales growth for the fashion chain in 2025. This is down from the mid-single-digit growth guidance provided in November.
“Trading activity within elements of our shopper base was weak as a result of cautious consumer sentiment and a lack of seasonal purchasing catalyst given the mild autumn weather,” the company said.
ABF, which also owns brands Ovaltine and Twinings, said Primark had delivered “good growth” in continental Europe and the US.
Overall, Primark’s total sales rose almost 2 per cent to £3.3bn in the 16 weeks to January 4, helped by new store openings. But like-for-like sales, a metric which strips out the effect of store openings and closures, declined 1.9 per cent in the same period.
The company said shoppers did not buy as many clothes in October and November, but sales had picked back up during the key Christmas trading period.
The fashion chain’s like-for-like sales in the UK and Ireland — which account for almost half of the total — fell more sharply, dropping 6 per cent over the 16 weeks. Primark’s share of the total UK fashion market slipped to 6.8 per cent.
Shares in ABF were down 0.4 per cent in early trading.
ABF expected Primark’s adjusted operating profit margin in 2025 to remain broadly in line with last year’s level.
It did not change its forecast for the group’s other divisions, which span groceries, ingredients, sugar and agriculture.
