Future Of British Business

Primark’s Strong Christmas Gives Boost to AB Foods Outlook

  • AB Foods says it’s more confident on clothing chain’s profit
  • Sales started weak on weather, then improved during quarter

Shoppers pass a Primark store in London in December 2023.

Photographer: Chris Ratcliffe/Bloomberg
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Associated British Foods Plc said it’s more confident about improving profitability after its Primark budget fashion retailer got a boost over the Christmas season from cash-strapped British shoppers buying cut-price clothing.

Primark’s sales jumped 7.9% in the first quarter and the chain reached its highest ever market share in the 12 weeks to Dec. 10, AB Foods said Tuesday. The company has set a goal for Primark’s adjusted operating margin this year of more than 10%.