AB Foods hit by Primark sales slowing September 13, 2010 SLOWING sales growth at budget fashion retailer Primark hit its parent company Associated British Foods’ shares yesterday. The 204-strong chain, which makes a third of group profit, has grown strongly through the downturn as its cheap chic clothes prove popular with cash-strapped shoppers, but now spending cuts, extra costs and tax rises are clouding the [...]
Higher VAT and costs will hurt profits September 13, 2010 IN recessions past, hard-up consumers have had to make do and mend. This time, they’re buying cheap and chucking away. Yesterday’s pre-close update from AB Foods showed that Primark, a leading purveyor of so-called “disposable fashion”, is going from strength to strength. Full-year like-for-like sales at the budget retailer are forecast to be six per [...]
UK shares surge as global deal boosts banks and China data cheers investors September 13, 2010 THE UK’s top share index ended higher yesterday after banks rose sharply in response to a new deal over global banking rules while mining shares gained on the back of bullish China industrial data. The FTSE 100 closed up 63.89 points, or 1.2 per cent, at 5,565.53 points, a fresh four-month closing high. “It has [...]
Primark “performing well” in tough market September 13, 2010 Clothing chain Primark has continued to perform strongly despite the tough consumer environment and expects annual sales growth of six per cent, owner Associated British Foods (ABF) said. The strength of sterling against the dollar helped the chain when goods were bought in the dollars because of a favourable exchange rate, the company said. However [...]
M&S hires new finance boss to help Bolland’s revolution August 3, 2010 MARKS and Spencer has hired former WH Smith executive Alan Stewart to help new chief Marc Bolland ring the changes at the company. Stewart, 50, who has held a series of senior posts at public companies, will join the retailer in October. He will be the right hand man to Bolland, who joined in May [...]
Heard it through the grapevine: Levis popular July 20, 2010 A new YouGov SixthSense report into high street fashion reveals that Levis is still in demand despite a high ownership rate amongst UK consumers. The report, which investigates public perceptions of 35 prominent high street brands, also brings into question the consumer-appeal of high-end brands such as Vivienne Westwood. Despite the fact that one in [...]
Bid for Tomkins fails to boost investor cheer as BP’s woes drag down FTSE July 19, 2010 WEAK US housing data helped push Britain’s top shares lower yesterday, as cautious investors trimmed positions in riskier assets, while BP fell after leaks were discovered in its capped well. The FTSE 100 closed down 10.57 points, or 0.2 per cent, at 5,148.28, having shed one per cent on Friday. The index’s fall echoed a [...]
BEST OF THE BROKERS July 19, 2010 ASSOCIATED BRITISH FOODS Evolution Securities has downgraded Associated British Foods (ABF) from “buy” to “neutral”, as it sees limited upside to 2011 earnings and believes the gross margin pressures at its Primark unit is beginning to build. However, Evolution remains optimistic about the company’s long-term prospects. GREAT EASTERN ENERGY Arden Partners reiterates its “buy” rating [...]
AB Foods sees a sales surge July 8, 2010 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 [...]
Primark July 8, 2010 RECEIVED wisdom tells us that shoppers flock to quality in times of hardship. With less cash to spend, punters buy fewer items that are more likely to last. Primark’s performance would suggest otherwise. Sales in the last sixteen weeks have climbed nine per cent at constant currencies, and Shore Capital estimates like-for-likes are up seven [...]