Increasing sales at Primark are set to improve profits at owner Associated Primark Food (ABF).
The budget fashion retailer is expected to see a 17 per cent increase in sales compared to the same period last year. Like-for-like sales are also set for a 4.5 per cent rise, according to figures from ABF. In its financial results report, ABF stated it was making significant progress ahead of the last 12 months highlighting the strong performance of both Primark and its business overseas.
Alongside its clothing business, ABF said brands such as Kingsmill and Ovaltine had been performing well with both recording "good growth" over the course of the year. It added that these positive results will help to offset a drop in profit recorded at AB Sugar. It has resulted in an increase in earnings per share which stood at 98.9p for the 2012/13 financial year.
Primark has long been a popular name for British consumers. Providing clothing and household items at competitive prices has made it one of the leading high street stores. It was boosted over the summer period by the seasonably warm weather which saw a 22 per cent increase in profits to June 21st, compared to the same period a year earlier.
ABF stated that it is looking to expand its Primark brand further across Europe with the most recent being opened at Alexanderplatz in Berlin and Enschede in the Netherlands. It brings the total amount of stores to 278 covering 10.2 million sq ft at the end of the financial year. It is now looking to extend these services even further.
The US has been pinpointed as a key area for growth with the north-east coast being targeted first. Following extensive research the company has decided on opening its first US stores at Downtown Crossing in the centre of Boston, Massachusetts. Primark expects to launch the 70,000 sq ft stores in late 2015 with a further ten outlets planned for 2016.
Find up to date information on the FTSE 100 and spread betting strategies at City Index.