Companies

ABF warns on profits as Primark faces tough start to the year

Jan 9, 2026 United Kingdom

Associated British Foods has revealed that it expects profits to be lower than last year. Primark has had a challenging start to the year, with improvements in UK trading offset by weakness in continental Europe

In its latest trading update, covering the sixteen weeks to the 3^rd of January, the UK-based group revealed that it expects its adjusted operating profit and adjusted EPS to be below last year’s levels. This follows negative revenue performance in several of its segments. However, attention turns to Primark, which, despite an estimated 1% revenue growth at constant currency for the period, is having a challenging start to the year.

Primark’s UK sales increased by 3%, with like-for-like sales rising by around 1.7%, as compared to the same period last year. This was achieved amidst a challenging clothing market, particularly over Christmas, emphasised ABF). Growth in the UK and Ireland was around 2% and 1.1% respectively, accounting for 45% of the retailer’s total sales.

During the same period, total sales in continental Europe decreased by 1%, with like-for-like sales falling by around 5.7% year-on-year as consumer confidence remained weak. This region accounted for 49% of total sales. In the US, meanwhile, total sales growth was estimated at 12%, despite a volatile retail environment impacting consumer sentiment and footfall.

“In the UK, focused actions and investments to strengthen our customer proposition have driven improved trading and market share gains, while trading has remained weak in continental Europe. In a challenging consumer environment, our focus is on factors within our control, including initiatives now underway in Europe aimed at improving performance”, explained George Weston, Chief Executive of the owner of Primark.

ABF added that its store roll-out programme continued across markets, as expected, contributing around 4% to sales growth in the period, including the opening of its first franchise store in Kuwait.

Image Credits: marketing-beat.co.uk

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