Fashion-conscious shoppers boost Primark
Primark’s owner ABF said the chain’s progress – alongside growth at its grocery, ingredients and agriculture businesses – has helped to offset declines at its sugar unit.
However ABF warned that a stronger pound and US dollar will have a bigger than expected hit on full-year earnings and could weigh on profits in its new financial year.
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Hide AdThe company, which makes more than half its annual profits from Primark, said exchange rate moves will knock around £30m off operating profit for the year to September 12, up from its previous estimate of £25m.
Primark tends to buy clothes from Asia in US dollars before selling them in euros in countries such as France, Germany and Spain.
ABF said it is working to minimise the impact of adverse exchange rates. It will report its full year results on November 3.