Executive Summary

• Primark’s owner Associated British Foods (ABF), provided a preliminary trading update for 1H17 sales results for the six months ending March 4, 2017. We focus only on Primark, ABF’s retail division, in this flash report.
• Primark revenues are expected to increase 10% year over year at constant currency for 1H17and reported sales are expected to increase 22% year over year. The company increased selling space by 12% year over year in 1H17.
• Total comparable store sales were flat, but for the UK increased by 2% year over year.
• Primark forecasts that operating profit margin in 1H17 will decline, reflecting increased input costs due to US dollar strength.