(Sharecast News) - Sales at clothing retailer Primark grew 2.1% on a like-for-like basis over the Christmas period despite warmer weather, parent company Associated British Foods said on Tuesday, adding that it did not expect supply disruptions from attacks on commercial shipping in the Red Sea.
The company said sales of womenswear and menswear were strong particularly in performance wear, leisure and tailored clothing and in its Rita Ora collection.
"Sales of our Christmas ranges were also strong and sold through well. At the start of the period sales of many of our cold weather categories were initially slower but have much improved with the recent cold temperatures," it added in a trading update.
Total Primark sales for the 16 weeks to January 6 rose 7.9% to £3.3bn. Like-for-like sales grew by 2.1% driven by higher average selling prices.
"We also feel more confident in the delivery of the Primark adjusted operating margin in this financial year, driven by a further improvement in product gross margin. This should insulate us well against potential additional costs of supply due to the disruption in the Red Sea should they arise," the company said.
"We exited the period with stock levels in a good position. We continue to monitor the situation in the Red Sea but at this stage we do not expect any significant disruption to our supply chain."
Reporting by Frank Prenesti for Sharecast.com
AB Foods (ABF)
