Owner of Primark, Associated British Foods (LON:ABF), posted sales of £7.5 billion in first-half results.
The £7.5 billion figure is 1% higher to that of the prior year. It also revealed an adjusted operating profit of £639 million, a 1% decrease compared to last year.
Primark itself delivered a profit growth of 25%. “Primark delivered excellent profit growth, driven by further development of our customer experience and selling space expansion,” said George Weston, Chief Executive of Associated British Foods.
“This is a robust set of results. Profit at AB Sugar was substantially reduced but, from this period, we expect our sugar profitability to improve. The strong underlying growth in Grocery profits demonstrates good momentum,” he continued.
Earlier in April, the world’s largest Primark store opened in Birmingham, covering 161,000 sq ft over five floors. In addition to offering its affordable fashion products, the new store boasts a Disney-themed café, a barber’s shop and a beauty studio.
With department stores such as Debenhams struggling for survival, Primark’s move is bold for a time where uncertain high street trading conditions prevail.
Primark has, however, been criticised in the past over its staff’s pay, and the impacts that “fast-fashion” has on the environment and societies alike.
Boohoo also revealed its financial results today, posting a 49% rise in its annual profit. Unlike Primark which trades exclusively on the high street, Boohoo is an online fashion retailer.
At the end of last year, Primark warned on the gloomy retail environment ahead of its sales in the run-up to Christmas.
But, despite its challenging run-up to the festive period, Primark exceeded expectations for its Christmas trading. For the 16 weeks to the 05 January, Primark sales increased 4%, and sales for Associated British Foods increased 2% as a whole.
At 08:12 BST Wednesday, shares in Associated British Foods plc (LON:ABF) were trading 0.2% higher.
Shares in Boohoo Group plc (LON:BOO) were up 0.046% as of 08:13 Wednesday.