Primark Sales Reach £9.82 Billion as Adjusted Operating Profit Falls 10.7%

Store Expansion Masks Weaker Underlying Sales New stores contributed 5% to sales growth. At constant currency, revenue rose 2%, while adjusted operating profit declined 12%. Like-for-like sales fell 2.6%. UK comparable sales increased 0.5%, against a 4.7% decline in continental Europe.

The adjusted operating margin narrowed to 10.2%, from 11.9%. ABF attributed the pressure to weaker comparable sales, higher markdowns and spending on prices, products, marketing and digital capabilities. For retailers, the distinction matters: new selling space can lift total revenue while existing stores remain under pressure.

Like-for-like growth and margin therefore provide a different view of performance from headline sales alone. Lower Prices and a New Digital Channel Primark had already outlined its response in ABF’s September trading update.

Its “Iconic Value” campaign introduced lower prices on hundreds of autumn/winter items, alongside changes to assortment, quality, in-store price visibility and marketing. The company said womenswear was outperforming other departments after receiving particular investment…