AB Foods expects drop in Primark’s LFL sales for H2 2025

Core Viewpoint - Associated British Foods (AB Foods) anticipates a decline in Primark's like-for-like (LFL) sales for the second half of the financial year, reflecting broader challenges in the retail environment [1][4][5] Group 1: Sales Performance - Primark's LFL sales for H2 are expected to be approximately 2% lower than the previous year, with a 2.4% decrease in Q3 and an anticipated 2% drop in Q4 [1] - In H2, Primark expects a sales increase of 1%, maintaining a consistent growth rate of 1% in both Q3 and Q4 [1] - For the full year of 2025, Primark projects a sales growth of around 1%, with approximately 4% attributed to its ongoing store rollout program [2] - In the UK and Ireland, H2 sales are expected to rise by about 1%, improving from H1, while market share increased from 6.6% to 6.8% [2] - In Spain and Portugal, sales are projected to grow by around 2% in H2, with flat sales in Q3 and a 3% growth anticipated in Q4 [2] Group 2: US Market Performance - In the US, Primark expects substantial sales growth of 23% in H2, with 21% growth in Q3 and 24% projected growth in Q4 [3] - The Click and Collect service has seen significant progress, now available at all 187 stores across Britain [3] - Four new stores have been opened in the US in H2, including the first in Tennessee [3] Group 3: Overall Company Performance - AB Foods' CEO George Weston expressed satisfaction with the group's performance in H2 despite a challenging environment characterized by consumer caution, geopolitical uncertainty, and inflation [4] - Primark delivered improved trading in the UK and strong sales growth in the US, while trading in continental Europe was softer due to a weaker consumer environment [5] - Grocery sales for the second half are expected to match the previous year's figures, indicating steady performance in international brands [5] - The adjusted operating profit in the grocery segment for H2 is projected to fall slightly short of initial expectations due to one-off restructuring expenses [6]