Executive Summary

• Primark’s parent, Associated British Foods (ABF), reported a pre-close trading statement for its 1H18 results, for the period ending March 3, 2018. ABF will announce detailed half-year results on April 17, 2018.
• ABF expects to report a 7% rise in Primark’s 1H18 sales at constant currency and a 9% rise as reported, driven by increased selling space.
• The company expects Primark’s comparable sales to decline by 1% during the period, as growth was hindered by an unusually warm October—a month when comps saw a “significant decline.”
• Management expects Primark’s operating margin for 1H18 to be similar to last year’s margin. The company plans to open 1.2 million square feet of selling space over FY18.