Overview
- Associated British Foods said headline operating profit will be below last year after a weak start to the financial year.
- Primark’s like-for-like sales fell 5.7% in continental Europe for the 16 weeks to 3 January, while the UK grew 1.7% and the US proved volatile.
- Management cited significantly increased markdowns to manage stock, which reduced profitability.
- First-half 2026 sales growth for Primark is now guided to the low single digits, below the roughly 4% analysts had expected.
- ABF shares dropped as much as 11.7% in early trading, and the ongoing Primark strategic review with Rothschild & Co continues with no decision as the Weston family maintains majority control.