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Trending right now: Singer Rita Ora (pictured) has a clothing collaboration with Primark
Primark suffered a setback over the summer as wet weather hit sales.
The clothing giant said the rain made it harder to move everything from flip-flops and T-shirts to light dresses and shorts over the past three months.
As such, owner Associated British Food (ABF) warned that Primark’s UK sales were on track to fall by around 3.1 per cent in the fourth quarter to 14 September.
This follows a 0.6 percent drop in the third quarter, when it said business was impacted by “difficult weather conditions, particularly in April and June.”
Shares in ABF, which owns a sugar business and food brands including Kingsmill, Twinings and Ovaltine as well as Primark, fell 8.5 percent, or 212 pence, to 2,289 pence.
Overall, Primark’s sales are expected to fall 0.9 percent in the fourth quarter after stronger performance in Europe and the US offset weaker trading in the UK.
ABF boss George Weston said: “While the UK weather was not favourable to Primark, strong growth in other markets and new store openings drove good sales overall.”
Primark has been slower than its rivals to adopt an online presence and is currently implementing a click-and-collect system.
Weston said yesterday it would take around a year to introduce this to all UK stores, but the company was “pleased” with the reaction to the trials.
Consumer confidence is increasing and products are increasing in their shopping baskets, he said.
But he added: “Frankly, I’m surprised that we haven’t had a more positive response to falling inflation rates and wage increases. It seems softer than I expected.”
He blamed this reluctance on bad weather and high interest and mortgage rates.
And the company has issued a warning about its sugar division, which has been hit by a dramatic fall in sugar prices across Europe.
Profits from this division are now expected to be lower in the next financial year, with profits forecast at between £50m and £75m.
This figure is much lower than the £200m forecast for the current financial year, which ends on Saturday next week.
But the company expects a recovery next year due to the contraction of lower prices and the readjustment of supply and demand.
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