Particle.news
Download on the App Store

AB Foods Warns on Profit as Primark’s Christmas Sales Miss, Shares Sink

Heavy markdowns following weak European trading triggered the warning.

Overview

  • ABF said group adjusted operating profit and adjusted EPS will be below last year after a tougher Christmas at Primark.
  • Primark’s like-for-like sales fell 2.7% in the 16 weeks to Jan. 3, with the UK up 1.7% and continental Europe down 5.7% alongside a volatile U.S. backdrop.
  • The retailer took heavier markdowns to clear stock, squeezing margins and prompting new first-half sales guidance of low single-digit growth.
  • ABF cut expectations for grocery and ingredients, citing weaker U.S. demand, including softness in cooking oils and bakery ingredients.
  • Shares dropped about 11%–12% in early London trading, while the Primark review continued and management pushed customer initiatives such as Click & Collect.