Primark numbers in fashion at ABF

● Third-quarter trading particularly strong in the leadup to Easter break

year, despite the lower pound’s pressure on input costs.

“The rollout of new Primark stores is set to continue apace, with 19 openings planned over the next 12 months. That’s lower than the 30 openings in the past year, potentially taming the explosive revenue growth reported in past trading updates.”

George Salmon, equity analyst at financial services group Hargreaves Lansdown, noted: “The UK has been singled out as performing particularly strongly, which would normally have positive readacross for the rest of the clothing sector.

“However, this probably isn’t the case this time. We feel Primark’s good domestic performance is more a sign the UK consumer is tightening the purse strings and moving down the value chain as inflation outstrips wage growth.

“At the moment, over a million square feet of sales space is being added every year, and this roll-out story means ABF shares trade on a more premium rating than many of its peers.

“The US is particularly important. Progress here looks good, but investors should remember that many other UK retailers have tried and failed to crack the notoriously competitive market across the pond.”