Primark adjusts outlook as overall sales underperform despite UK strength

Primark owner Associated British Foods (ABF) has announced that sales for the 16 weeks to 3 January 2026 were below expectations and has lowered its outlook for the year’s trading accordingly.

In the UK, Primark delivered sales growth of around 3%, with like-for-like sales growth of around 1.7% “in a difficult clothing market”, particularly over Christmas.

As such, Primark gained market share in the period. The growth was the result of the retail giant’s actions and investments to strengthen its customer value proposition through enhancing its product offer, “improving price perception and increasing digital customer engagement”, including Click & Collect.

Primark’s womenswear performance was particularly strong, but in continental Europe, where similar initiatives to the UK are only recently underway and consumer confidence remains weak, like-for-like sales declined around 5.7% in the period.

The retailer has a broad range of initiatives in place for the coming months which it expects to drive improved sales and profitability, particularly in Europe.

However, if Primark’s current sales trends were to continue in the second half of the year, it would expect the adjusted operating profit margin for the full year to be approximately 10%, similar to the first half, as it continues to invest in growth.

Additionally, in the US, the retail environment was “volatile” in the period, which impacted consumer sentiment and footfall.

George Weston, Chief Executive of Associated British Foods, said: "Primark has had a challenging start to the financial year, with a mixed performance. In the UK, focused actions and investments to strengthen our customer proposition have driven improved trading and market share gains, while trading has remained weak in continental Europe.

"In a challenging consumer environment, our focus is on factors within our control, including initiatives now underway in Europe aimed at improving performance.

"We are also making good progress to deliver Primark’s medium and longer-term growth opportunities. Our food businesses experienced mixed trading in the period, particularly in the US where consumer demand in certain categories has continued to weaken.

"While we expect the tough trading conditions to continue in the short term, we remain confident in the overall prospects for the group."

Primark’s store roll-out programme continued across markets and contributed around 4% to sales growth in the period, including the first store opening in Kuwait through its franchise model.

Overall, Primark’s sales growth in the period was below its previous expectations and the retailer now expects sales growth in the first half of 2026 to be in the low single digits.

ABF will provide final revenue by business segment for the 16 weeks to 3 January 2026 on 22 January 2026.