Primark owner to shed light on high street Christmas trading
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The parent firm of Primark will next week shed light on whether it has been knocked by tough conditions on the high street – or benefited from a splurge in festive shopping. Associated British Foods (ABF) will also reveal whether the consumer group, which also makes food and ingredients, has been affected by recent weakness in sugar prices.
The FTSE 100 company will post a trading update for its latest quarter on Thursday January 23. It comes after a year which saw shares lift strongly in 2024 before sinking later in the year as it came under pressure from lower sugar prices and concerns over consumer sentiment.
On Friday, the Office for National Statistics (ONS) revealed that the UK retail sector saw a weaker-than-expected December, as sales dropped by 0.3% for the month. It came amid continued pressure on household budgets from rising mortgage and rental costs.
However, investors will take some positivity from the figures, which pointed towards 4.4% growth for clothing and footwear retailers. Retail rivals including Next have also delivered strong updates amid signs of resilience from fashion customers. In its latest update in November, ABF revealed that Primark sales grew by 1% in the year to September after the budget chain was hit by damp early summer weather.
Shareholders will be hoping that positive momentum later in the financial year translated into a strong run-up to Christmas. Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Primark, ABF’s star asset, likely enjoyed bustling footfall over the festive season, with Christmas shoppers flocking through its doors.
