Primark reports a significant rise in full-year profits, buoyed by sales growth and margin recovery.
- The retailer’s adjusted operating profit increased by 51% to £1.1 billion, with margins rising to 11.7%.
- Sales experienced a 6% upturn, with robust performance in the US, France, Spain, Italy, UK, and Central and Eastern Europe.
- Primark plans to continue its store expansion in Europe and the US, anticipating new stores to add 4% to 5% in sales growth annually.
- The brand remains committed to its low-cost model, focusing on delivering value clothing and enhancing digital engagement.
Primark, a leader in the value fashion sector, has recorded a notable rise in its full-year profits, driven by substantial sales growth and a significant recovery in margins. According to George Weston, the head of the parent company, Associated British Foods, the retailer’s low-cost business model continues to thrive.
The adjusted operating profit for Primark surged by 51%, reaching £1.1 billion. This growth has been attributed to the improvement in the retailer’s profit margins, which escalated from 8.2% last year to 11.7%. Such financial achievements highlight the effectiveness of Primark’s strategic operations.
Sales at Primark climbed by 6%, underlining its strong market performance across several key regions, including the US, France, Spain, Italy, and Central and Eastern Europe, in addition to growth in the UK. Primark’s enduring appeal, attributed to its commitment to offering great value clothing and emphasising a unique store experience, has resonated well with consumers.
Looking ahead, Primark is set to focus on mid-single-digit sales growth in 2025, with expectations of maintaining its current profit margins. The company is planning to proceed with its strategy of expanding its store footprint in growth markets in Europe and the United States. George Weston mentioned the presence of ‘significant white space for new stores’ as a vital element for sustainable, medium to long-term growth.
Moreover, the retailer anticipates these new store openings to contribute an additional 4% to 5% to its overall annual sales growth. Apart from rolling out new outlets, Primark continues to strengthen its brand through increased investment in digital engagement, product innovation, and brand positioning.
Primark’s financial performance underscores its effective low-cost model and strategic market expansion efforts, paving the way for continued growth.
