AB Foods sees a sales surge
PRIMARK owner Associated British Foods gave an upbeat update yesterday saying its third quarter sales jumped 13 per cent and that it expected very strong growth in annual earnings, driven by its fashion discount retailer. Its 198-strong Primark chain reported sales in its spring quarter rose 15 per cent, outperforming many of its rivals and helped by a strong line of floral print dresses, court shoes and accessories in its key markets of Britain, Ireland and Spain.
The food and retail group, which also owns household brands Kingsmill, Silver Spoon and Twinings, did not give a like-for-like figure for its 16 weeks to 19 June, but house broker Panmure Gordon calculated Primark sales growth at seven per cent, just off from its first half eight per cent like-for-like growth. The Primark stores have coped with the downturn better than most as its cheap designer clothes have proved a hit with cash-strapped shoppers. However, group finance director John Bason urged caution over the tough economy.