AB Foods still sees lower FY earnings; Primark Q3 LFL sales fall 2.2%

(Sharecast News) - Primark's third quarter like-for-like sales fell 2.2% as the Iran war and unseasonal UK spring weather hit consumer sentiment, parent company Associated British Foods said on Wednesday. The diversified group said it still expected to annual profit to be lower than last year due to an expected £25m-60m loss at its sugar business.

Overall Primark sales for the 16 weeks to June 20 rose 3% and were up 2% in the year to date. In the UK, total sales were up 1%, with like-for-like sales broadly flat, although the discount clothing chain continued to gain market share in a market that declined in the period.

"A strong start to our spring/summer trading in March was followed by weaker trading in April and May, largely due to the impact of the Middle East conflict on consumer sentiment and unseasonal weather. Improved weather in June contributed to stronger trading," it added.

In continental Europe, where consumer confidence remained weak, total sales fell 1% and like-for-like sales declined 3.6%. In the US, trading continued to be mixed in the period as sales grew 16%, with three new store openings to reach 41 in total.

The company in April confirmed it planned to demerge Primark from its food operations and list both entities in London.

Reporting by Frank Prenesti for Sharecast.com