Primark reports 11 percent rise in Q1 revenues

For the 16 weeks to January 7, 2017, sales at Primark were 11 percent ahead of those reported last year at constant currency driven by increased retail selling space. Sales were 22 percent ahead of last year at actual exchange rates.

On a comparable week basis, total retail sales at constant currency were up 12 percent and up 23 percent at actual exchange rates. The company said, increase in average retail selling space in this 16 week period, compared with the same period last year, was 12 percent.

Retail expansion continues in the UK and overseas markets

Primark saw positive trading in the UK, however like-for-like sales for the group were held back by declines in Germany and the Netherlands, the latter particularly affected by the rapid increase in selling space. The company said, new stores opened in the period traded strongly and business in the US continued to develop.

Primark expects the operating profit margin to decline as the year progresses reflecting the strength of the US dollar on input costs. 15 new stores were opened in the period comprising relocations in Reading and Sheffield to larger, more central locations. New UK stores were opened in Carlisle, Stafford, Truro and York

The company also saw retail expansion with new stores in Liffey Valley in Ireland, Mallorca in Spain, Mannheim and Hamburg in Germany, Lille and Paris, Evry in France and the company’s second store in Italy in Brescia and an 89,000 sq. ft. store in the centre of Amsterdam. Primark’s sixth store also opened doors in the US in Burlington, Massachusetts. Primark aims to open 1.3 million square foot in the current financial year.

Picture:Primark