Primark current trading 'ahead of expectations'

Primark owner Associated British Foods (ABF) has said the fast fashion giant has been trading “ahead of expectations” and expects year to date sales to be “significantly better” than a year ago.

“Primark trading year to date has been ahead of expectations with improved like-for-like sales compared to the fourth quarter of our last financial year,” said ABF chair Michael McLintock ahead of the company’s annual general meeting on Friday.

Primark’s margin year to date has also been ahead of expectations and the company expects sales from December to April to be “significantly better” than in the same period a year earlier.

The company said it has been managing disruption in its supply chain by prioritising products most in demand with the support of its logistics providers.

“We have stock cover on the vast majority of lines for the important Christmas trading period,” it said.

Since the year-end, Primark has opened two new stores, one in Vigo, Spain, and one in Catania, Italy, bringing its total estate to 400 stores.

“Taking these factors into account, we continue to expect significant progress, at both the half and full year, in adjusted operating profit and adjusted earnings per share for the group," ABF said.