Primark set for sales boost

Increasing sales at Primark are set to improve profits at owner Associated Primark Food (ABF).

The budget fashion retailer is expected to see a 17 per cent increase in sales compared to the same period last year. Like-for-like sales are also set for a 4.5 per cent rise, according to figures from ABF. In its financial results report, ABF stated it was making significant progress ahead of the last 12 months highlighting the strong performance of both Primark and its business overseas.

Alongside its clothing business, ABF said brands such as Kingsmill and Ovaltine had been performing well with both recording "good growth" over the course of the year. It added that these positive results will help to offset a drop in profit recorded at AB Sugar. It has resulted in an increase in earnings per share which stood at 98.9p for the 2012/13 financial year.

Primark has long been a popular name for British consumers. Providing clothing and household items at competitive prices has made it one of the leading high street stores. It was boosted over the summer period by the seasonably warm weather which saw a 22 per cent increase in profits to June 21st, compared to the same period a year earlier.

ABF stated that it is looking to expand its Primark brand further across Europe with the most recent being opened at Alexanderplatz in Berlin and Enschede in the Netherlands. It brings the total amount of stores to 278 covering 10.2 million sq ft at the end of the financial year. It is now looking to extend these services even further.

The US has been pinpointed as a key area for growth with the north-east coast being targeted first. Following extensive research the company has decided on opening its first US stores at Downtown Crossing in the centre of Boston, Massachusetts. Primark expects to launch the 70,000 sq ft stores in late 2015 with a further ten outlets planned for 2016.

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.