This ad will be closed automatically in X seconds.

Primark chief executive bullish after re-opening record sales success

“We are as convinced as we have ever been in the long-term growth prospects for Primark” says George Weston.

The expected drop in half year sales and profits at Primark may have been confirmed this morning (20 April), however chief executive George Weston is confident that stores will become cash generative following the easing of restrictions, reporting record sales in England and Wales in the week after re-opening on 12 April.

The fast fashion retailer’s parent company, Associated British Foods said its revenue dropped 40% to £2.23 billion for the six months to 27 February, with the majority of its stores closed for more than half of the period.

Adjusted operating profit dropped a staggering 90% to £43 billion.

ABF reported a 17% drop in group revenue to £6.31 billion, while its adjusted operating profit fell 46% to £369 million.

However, Primark considers its like for like performance to be strong, reported Fashion United, considering their was lower category spend, lower footfall and trading restrictions when stores were open.

Like for like performance in the UK was -6% in the first half and -1% excluding four major city centre stores.

Chief executive George Weston is confident that stores will become cash generative following the easing of restrictions.

“We are excited about welcoming customers back into our stores as the lockdowns ease and are delighted with record sales in England and Wales in the week after reopening on 12 April,” he commented. “With our success in a number of new markets, as wide-ranging as Poland and Florida, we are as convinced as we have ever been in the long-term growth prospects for Primark.”

ABF added that it expects to be trading from 68% of selling space by the end of April.

It also confirmed it will repay £121 million in furlough money claimed under government job retention schemes and also pay out a dividend to shareholders.

Want to read more news like this? Simply sign up to our daily digest in the box below. You can also follow @LicensingSource on Twitter and @licensing_source on Instagram.

MORE NEWS
BenShermanTeamGB500x500
 
Retail capsule collection features polo shirts, t-shirts and jackets, with Rankin photographing top British athletes for the marketing campaign....
MilltagWH500x500
 
Cycle clothing specialist has taken inspiration from the classic Hammers away kits of the 60s and 70s for new range....
DSEngage500x500
 
DSI's annual clients' conference will go live on Tuesday 18 May and Wednesday 19 May....
Amazonbox500x500
 
New roles across the UK will bring retailer's total workforce to more than 55,000 in 2021....
BrandInformerlogo500x500
 
Including licensing specialist Victoria Preston launching The Brand Informer online platform to connect retailers to brand owners....
JBPrimark500x500
 
Baloo and Mowgli arrive at fast fashion retailer on apparel, accessories and home décor....
Get the latest news sent to your inbox
Subscribe to our daily newsletter

The list doesn't exist! Make sure you have imported the list on the 'Manage List Forms' page.