Posted By Global Banking and Finance Review
Posted on January 23, 2025
(Removes extraneous "on Thursday" in lede)
LONDON (Reuters) -Associated British Foods downgraded the annual sales guidance for its Primark budget clothing business on Thursday after a disappointing Christmas quarter.
The group said it was now targeting "low-single digit" sales growth in 2025 for Primark, having previously forecast "mid single digit" growth.
It said Primark's total sales grew 2% over the 16 weeks to Jan. 4, its fiscal first quarter, helped by new store openings.
However, on a like-for-like basis they fell 1.9%, reflecting a 6.4% dip in its main UK market.
The group said growth in UK like-for-like sales over the key Christmas period was more than offset by weaker autumn trading in a "challenging retail environment."
(Reporting by James Davey, Editing by Paul Sandle)