Primark reaffirms outlook as UK and US sales offset European slowdown

Associated British Foods (ABF) has reaffirmed its recent trading update for Primark, reporting group revenue growth of 4.2% for the 16 weeks to 3 January 2026, in line with estimates released earlier this month.

Primark, which remains ABF’s largest division, delivered revenue of £3.5 billion over the period. Total sales growth stood at 1%, with performance varying significantly by region. UK-only sales rose by 3%, while the UK and Ireland combined grew by 2%, underpinned by positive like-for-like growth of 1.1%.

In contrast, sales across Europe (excluding the UK and Ireland) declined by 1%, with like-for-like sales down 5.7%, reflecting continued pressure on consumer spending in key continental markets. The US was the standout performer, delivering sales growth of 12%, albeit from a smaller base.

At a group level, constant currency revenue growth came in at 1.5%, with the grocery division growing by 0.7% and agriculture declining by 0.9%. Ingredients and sugar both saw declines of 2.1% and 6.9%, respectively, reflecting ongoing commodity and input cost challenges.

ABF confirmed there is no change to the estimates it published on 8 January 2026, with Primark’s regional performance tracking in line with expectations.

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."

The group is scheduled to announce its interim results for the 24 weeks to 28 February 2026 on 21 April 2026.