Sunshine boosts Primark sales but strong pound brings gloom

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PRIMARK’S sales growth has continued to accelerate after the retail chain benefited from warm weather and a busy period of store openings.

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 £50​m impact.