Associated British Foods have raised the full-year profit outlook for its Primark fashion business after sales at stores which reopened after COVID-19 lockdowns in its latest quarter beatmanagement expectations in all markets.
The group said Primark’s revenue was £1.6 billion in the third quarter to June 19 after the reopening of all stores and the opening of seven new stores, up from £0.6 billion in the same period last year.
A number of new sales records were set and the like-for-like performance was much improved on earlier periods during the pandemic, reflecting an increase in both confidence and willingness to spend by customers.
Primark’s like-for-like sales were 3% up on a two-year basis in the quarter, though volatility remained high and performance varied by region depending on the degree of COVID-19 restrictions still in place.
The group said that the relevance and appeal of its value-for-money offering has been evidenced by the number of customers that have returned to shop in person in our stores, across every one of our markets, each time they have reopened post-lockdown.
“This reopening has also seen a resurgence in demand for fashion across womenswear and menswear, as customers start to step out of lockdown leisurewear. There has been a strong response to our two hero womenswear ranges for spring/summer, Joyful Gelato and Garden Party, with the pink gingham and purple blazers selling out within weeks supported by digital marketing. Licence product performed very well with strong sales in our NBA-branded and children’s gaming ranges, particularly in the US. Our new baby collection made a strong start.”