Sales on track to increase at Primark
Penneys' parent Primark is expected to report a 4pc increase in sales in constant currency for the year ended 14 September 2019.
The performance at the Dublin-headquartered chain is being driven by increased selling space, which is offset by a 2pc decline in like-for-like sales, according to a pre-close trading update from the group.
Like-for-like sales were mainly held back by Northern Europe, where the group reported a 3pc fall in turnover.
Sales growth in the fourth quarter of the year increased, driven by an improvement in like-for-like performance.
Meanwhile, early trading of the new autumn/winter range has been “encouraging”, the group said.
Primark accounts for about 60pc of Associated British Foods’ annual profits.
Controlled by the Weston family, ABF also owns a number of well-known grocery brands, including Ovaltine, Ryvita, Blue Dragon and Twinings. It has a significant sugar producing arm.
Primark operating profit is unchanged, with margin ahead year-on-year.
Elsewhere, the operating profit from its sugar division is expected to be in line with last year, while the grocery arm is expected to deliver operating profit “well ahead” compared to the previous 12 months.