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LONDON, July 1 (Reuters) - Associated British Foods
on Thursday raised the full-year profit outlook for its Primark
fashion business after sales at stores which reopened after
COVID-19 lockdowns in its latest quarter beat management
expectations in all markets.
The group said Primark's revenue was 1.6 billion pounds
($2.2 billion) in the third quarter to June 19 after the
reopening of all stores and the opening of seven new stores, up
from 0.6 billion pounds in the same period last year.
It said a number of new sales records were set and the
like-for-like performance was much improved on earlier periods
during the pandemic, reflecting an increase in both confidence
and willingness to spend by customers.
Primark’s like-for-like sales were 3% up on a two-year basis
in the quarter, though volatility remained high and performance
varied by region depending on the degree of COVID-19
restrictions still in place.
The group said data for the total UK clothing market, which
includes online sales, for the seven-week period after reopening
showed both volume and value share gains for Primark on a
two-year basis.
AB Foods now has higher expectations for Primark's final
quarter sales and its forecast for full-year sales has increased
accordingly.
Primark's full-year 2020-21 adjusted operating profit,
stated before repayment of government job retention scheme
monies, is now expected to be broadly in line with 2019-20,
versus previous guidance of "somewhat lower".
AB Foods also owns major sugar, grocery, agriculture and
ingredients businesses.
Its full-year forecast for group adjusted operating profit
is now in line with last year's outcome.
($1 = 0.7243 pounds)
(Reporting by James Davey; Editing by Kate Holton)
AB Foods (ABF)