Primark: Profit warning issued by retailer's parent firm after ‘difficult’ Christmas trading
Primark owner Associated British Foods has seen its shares slump after warning over profits as sales across the discount clothing chain disappointed in “difficult” Christmas trading.
Shares in the group were 12 per cent lower in early trading on Thursday as AB Foods revealed Primark sales edged around 1.7 per cent higher like-for-like in the UK over the 16 weeks to January 3 and fell 5.7 per cent across Europe.
The group said: “Overall, Primark’s sales growth in the period was below our previous expectations and we now expect Primark’s sales growth in the first half of 2026 to be in the low single digits.
“In a difficult trading environment, we significantly increased markdowns to manage inventory levels effectively, which impacted profitability.”
The group – which also operates a grocery business with brands including Kingsmill and Twinings and Ryvita, as well as sugar, ingredients and agriculture divisions – said it now expects annual group-wide underlying earnings to be below the previous year.