Primark cuts sales outlook after struggle in UK

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International fashion retailer Primark has cut its sales forecast for this year, blaming a weak performance in its core UK market on cautious consumer sentiment.

Associated British Foods, the parent of Primark, said in a trading update on Thursday that it was now targeting “low” single-digit sales growth for the fashion chain in 2025. This is down from growth guidance of a single figure of mid-November provided in November. .

“Trading activity in elements of our customer base was weak due to cautious consumer sentiment and a lack of seasonal buying catalyst given the mild fall weather,” the company said.

ABF, which also owns the Ovaltine and Twinings brands, said Primark had made “good growth” in continental Europe and the US.

But the fashion chain’s like-for-like sales in the UK and​​​​​​Ireland – which account for almost half of the total – fell by 6 per cent in the 16 weeks to January 4.

The company said shoppers did not buy as many clothes in October and November, but sales recovered during the key Christmas trading period.

In the UK, like-for-like sales fell by 6.4 per cent, with Primark’s share of the total UK fashion market falling slightly to 6.8 per cent.

Overall, Primark’s total sales fell by 1.9 per cent.

ABF predicted that Primark’s adjusted operating profit margin in 2025 would remain broadly in line with last year’s level.

He did not change his forecast for the other divisions of the group, which span food, ingredients, sugar and agriculture.