Primark owner to shed light on high street Christmas trading
The parent firm of Primark will next week shed light on whether it has been knocked by tough conditions on the high street – or benefited from a splurge in festive shopping.
It comes after a year that saw shares lift strongly in 2024 before sinking later in the year as the FTSE 100 company came under pressure from concerns over consumer sentiment.
On Friday, the Office for National Statistics (ONS) revealed that the UK retail sector saw a weaker-than-expected December, as sales dropped by 0.3% for the month.
It came amid continued pressure on household budgets from rising mortgage and rental costs.
However, investors will take some positivity from the figures, which pointed towards 4.4% growth for clothing and footwear retailers.
Retail rivals including NEXT have also delivered strong updates amid signs of resilience from fashion customers.
In its latest update in November, Associated British Foods revealed that Primark sales grew 1% in the year to September after the budget chain was hit by damp early summer weather.
Shareholders will be hoping that positive momentum later in the financial year translated into a strong run-up to Christmas.
Aarin Chiekrie, Equity Analyst at Hargreaves Lansdown, said: "Primark, ABF’s star asset, likely enjoyed bustling footfall over the festive season, with Christmas shoppers flocking through its doors.
"Overseas expansion is another key ingredient expected to keep Primark’s tills ringing."
The retail chain currently has 451 stores but has said it plans to grow this to 530 stores globally by 2026.
Investors will hope the company will shed more light on its expansion progress, which will see its brand grow in Europe and the US.
Elsewhere, shareholders will also be keen for the company to give further detail on how profitability might have been affected by the recent decrease in sugar prices.
Prices have slipped in recent weeks to their lowest levels since October 2023 and management have already warned that sugar profits could be cut by more than half this year.
The company, which owns the Twinings, Ryvita and Pataks brands, will also reveal how its food and drink operation has traded.
Retail sales were largely weaker in December due to a shock slump in supermarket sales, with grocery sales sliding by 1.9% for the month.