DISCOUNT FASHION chain Primark has seen its sales fall short of hopes because of the unusually mild weather, parent firm Associated British Foods (ABF) said yesterday.
ABF chairman Charles Sinclair told shareholders at the group’s annual meeting that overall operating profits for the two months of its new financial year were broadly in line with forecasts.
However, he said that like-for-like sales at Primark “are currently below expectation as a result of the unseasonably warm weather”. Sinclair added: “At this early stage in the year Primark’s profit estimate for the full year is unchanged.”
ABF last month hailed a “magnificent year” for Primark, with sales soaring 16 per cent to almost £5 billion in the 12 months to 13 September.
Charles Stanley analyst Rae Ellingham said: “The announcement may serve as a reminder to investors that consistent growth at Primark is not guaranteed and we remain concerned at the high valuation being applied by investors.”