🌍 Mixed Market Performance
Primark’s Q1 revenue reached £3.36B, up 1.9% at constant rates but down 0.4% at exchange rates. UK and Ireland, accounting for 45% of sales, reported a 4% drop. However, growth markets like Spain, Portugal, and the US delivered robust results. Iberian sales rose 9%, driven by new store openings and strong local demand.
🏬 Strong Growth in Key Markets
Spain and Portugal contributed 18% of sales and grew by 9%, despite challenges like the Valencia floods. France and Italy (16% of sales) grew by 5%, driven by new stores. Central and Eastern Europe, though small at 3% of sales, grew 22%. The US surged 17%, adding 29 stores with 17 more in the pipeline.
❄️ UK/Ireland Struggles
Sales in the UK fell 4%, with like-for-like sales down 6.4%. Mild autumn weather, cautious consumers, and market-wide declines affected results. Still, click-and-collect drove engagement, expanding to 113 stores. December’s Christmas shopping improved results, softening earlier losses.
📈 Looking Ahead
Primark targets 3% growth in 2025, with store openings adding 4% to total growth. Plans include eight new stores and ongoing digital rollout. Operating profit margins are expected to hold steady, aided by better inventory management and cost controls. The company remains confident in its brand’s long-term appeal despite market challenges.
Will Primark’s growth in new markets offset UK losses?
