Sunshine boosts Primark sales but strong pound brings gloom

Associated British Foods, which also owns household brands such as Kingsmill, Twinings and Ovaltine, said Primark’s total revenues growth was 22 per cent in the quarter to June 21 at constant exchange rates.

This brought the improvement in the first 40 weeks of its financial year to 17 per cent and reflected the impact of warmer weather compared with a year ago in March and April and continued strong trading over the following two months.

Selling space increased by one million sq ft on a year earlier to take the Primark estate to 275 stores covering 10 million sq ft in locations across Europe. A further nine new stores have been opened since the end of the period.

Across the group, AB Foods said that its quarterly revenues were three per cent higher at constant exchange rates but three per cent lower when currency movements were taken into account.

It said sterling was stronger than most of its major trading currencies, adding that if current rates prevail it will suffer a £50m impact.