Rita Ora helps Primark to buck pre-Christmas slump
RITA Ora helped Primark’s first-quarter sales rise 7.3% to £3.4billion after a slow start caused by unseasonal warm weather reducing demand for winter clothes.
Chain owner Associated British Foods said strong Christmas trading helped Primark recover ground, with the singer’s collection, festive specials, tailored clothing and performance wear doing well.
Sales of cold weather gear picked up as the temperatures dropped.
UK sales rose 4.5% over the 16 weeks to January 6, which helped increase market share by 0.1 points to a record 7.1%.
Sales in Europe also climbed, by 8.1%, but the star performer for Primark was its US operation which recorded growth of 45% thanks to store openings.
ABF said that although it was monitoring the conflict in the Red Sea, where Houthi rebels are attacking cargo ships, it did not expect any significant disruption to its supply chain.
It added that the recovery in Primark’s margins should “insulate us well against potential additional costs of supply due to the disruption in the Red Sea should they rise”.
Primark accounts for nearly half of ABF’s revenues and although its growth rate had halved against the preceding quarter, the fashion retailer still helped lift group revenues by 2.8% to £6.9billion. ABF’s grocery arm, which owns brands including Jordans, Ryvita, Twinings, Kingsmill and Blue Dragon sauces, grew its revenues by 1.8% to £1.4billion, while sugar sales were up 3.8% to £825million. Primark, grocery and sugar combined helped ABF weather 12.1% and 2.8% declines respectively at its agriculture and ingredients businesses. Elsewhere, Premier Foods upgraded its full-year forecasts after seeing its firsthalf revenues rise 17.7% to £491.1million and its pre-tax profits surge by 38% to £58.1million.
The Oxo, Bisto and Homepride owner said it was growing ahead of the market and that, with inflation falling, it could cut the price of its products such as Batchelors Super Noodles and Mr Kipling. ●●Online fast fashion group Boohoo announced it has parted company with finance director Shaun McCabe after just 16 months by “mutual consent” and with immediate effect.