Primark owner ABF to shed light on high street Christmas trading

The FTSE 100 company will post a trading update for its latest quarter on Thursday January 23.

It comes after a year which saw shares lift strongly before sinking later in 2024 as it came under pressure from lower sugar prices and concerns over consumer sentiment.

Last week, the Office for National Statistics (ONS) revealed that the UK retail sector saw a weaker-than-expected December, as sales dropped by 0.3% for the month.

It came amid continued pressure on household budgets from rising mortgage and rental costs.

However, investors will take some encouragement from the figures, which pointed towards 4.4% growth for clothing and footwear retailers.

Retail rivals including Next have also delivered strong updates amid signs of resilience from fashion customers.

In its latest update in November, ABF revealed that Primark sales grew by 1% in the year to September after the budget chain was hit by damp early summer weather.

Shareholders will be hoping that positive momentum later in the financial year translated into a strong run-up to Christmas.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Primark, ABF’s star asset, likely enjoyed bustling footfall over the festive season, with Christmas shoppers flocking through its doors. Overseas expansion is another key ingredient expected to keep Primark’s tills ringing.”