Primark’s yearly profits have seen a significant uplift due to notable sales growth.
- The company’s adjusted operating profit has increased by 51%, reaching £1.1 billion.
- This growth is attributed to a rise in sales across various international markets.
- Primark is focusing on enhancing its store experience and increasing digital engagement.
- Plans are in place for continued expansion and investment in strategic initiatives.
Primark has reported a remarkable increase in profits for the year, largely driven by notable sales improvements and a significant recovery in profit margins. The fashion retailer’s adjusted operating profit surged by 51%, reaching £1.1 billion, as margins improved from 8.2% in the previous year to 11.7%.
Sales for the year rose by 6%, totalling £9.4 billion. This growth was evident across multiple markets, including the US, France, Spain, Italy, and Central and Eastern Europe, with further expansion observed in the UK. The retailer has benefited from maintaining its reputation for offering great value clothing, providing a unique store experience, and boosting digital engagement.
Looking forward, Primark aims for mid-single digit sales growth in 2025 and expects its margins to remain stable. The company plans to advance its store rollout programme in both European and US markets, where there is considerable scope for new stores, which are anticipated to contribute between 4% to 5% per year to overall sales growth.
George Weston, head of Associated British Foods, stated: “Primark achieved good sales growth this year and I am particularly pleased with the significant recovery in margin. Our low-cost model is as strong as ever, as we maintain our relentless focus on delivering great-value clothing and a unique store experience.”
Primark’s strategic focus includes increased investment in digital, product, and brand initiatives, underscoring its commitment to sustainable growth over the medium and long term.
Primark’s robust performance and strategic focus on growth indicate a promising future for the retailer.
