Primark H1 sales up 19 percent as UK, EU markets shine

Sales at fast fashion giant Primark increased 19 percent in the first half as the company experienced “strong like-for-like sales growth driven by price and volume”.

The budget fashion chain made sales of 4.23 billion pounds in the six months to March 4, up from the 3.54 billion pounds it posted a year earlier. On a constant-currency basis, sales increased 17 percent.

Trading was “significantly better than expected”, Primark said, “driven by good footfall and the appeal of our proposition to new and existing customers”.

The retailer said it started the year with “good sales” in September, followed by “softer trading” during a warm October. Trading then improved in November and December, with the retailer reporting two record sales weeks in the run-up to Christmas.

Primark continued: “Trading in the New Year started very strongly with a slight softening in February against harder year-on-year comparators. More recently we have seen a positive reaction to our spring and summer ranges.”

Strong sales growth in UK, Europe

The stronger than expected sales came as the UK and Europe continued to recover from the pandemic and footfall improved.

In the UK, sales were up 15 percent in H1, driven by like-for-like sales growth of 15 percent, while sales in Europe - excluding the UK - were up 18 percent, with like-for-like sales up 8 percent.

Primark also announced plans to invest in new stores in its German market where it said currently “a large proportion of German shoppers do not live within a convenient distance” of its stores.

It said the new stores “will be smaller than the average in Primark's estate in Germany and the merchandise will be selected to appeal to local customer demand”.

In the US, H1 sales were up 11 percent with “good trading across the 16 stores”. The retailer also announced plans in the coming months to sign leases for stores across southern states of the US, including locations in Texas.

Primark said its strong sales resulted in a better than expected operating profit margin of 8.3 percent in the first half - but that was still below the operating profit margin of 11.7 percent it posted a year earlier.