Clothing retailer Primark has reported revenues of £4.47bn ($5.99bn) in the first half (H1) of the fiscal year 2025 (FY25), marking a 1% decrease on both an actual currency basis and a constant currency basis.
The retailer witnessed expansion in several key markets: France, Italy, Portugal, Spain, the US and regions of Central and Eastern Europe.
In the UK and Ireland, Primark experienced a 4% dip in sales, although there was a notable surge in like-for-like sales during the critical Christmas season.
In contrast, Spain and Portugal enjoyed an 8% increase in sales, fuelled by strong market performance and the opening of new stores.
Sales in France and Italy rose 4%, attributed to recent store launches. The Central and Eastern European markets recorded an impressive 21% jump in sales, primarily due to new store openings.
In the US market, where Primark is actively increasing its presence, there was a significant 17% rise in sales, with new outlets contributing to greater sales density.
During H1 FY25, the retailer marked its entry into the state of Texas with the opening of one of two new stores, taking its US portfolio to 29 stores.
In Northern Europe, comprising Germany, the Netherlands, Belgium and Austria, sales saw a modest 1% increase with like-for-like sales up 2.4%.
Operating profit for Primark stood at £537m in H1 FY25, a 6% increase from £508m in the same quarter of the previous year.
Adjusted operating profit climbed 8%, reaching £540m against £508m in H1 FY24.
On a constant currency basis, adjusted operating profit margin therefore grew to 12.1% from last year's 11.3%.
Primark aims to sustain its growth trajectory in Europe and the US markets, projecting this strategy to contribute between 4% and 5% to its annual sales growth.
In H1 2025, the company allocated £212m towards capital projects that included the inauguration of eight new stores along with store optimisation initiatives such as expansions, resizing efforts and relocations.
Associated British Foods chief executive George Weston stated: “Primark delivered good growth in Europe and the US, with continued consumer caution in the UK. Primark’s profit and margin delivery was strong and our low-cost operating model is working well. Our focus remains on sharp execution of our key growth initiatives across product, brand, digital and new market entry.”
In 2025, Primark anticipates its adjusted operating profit margin to be closely aligned with the previous year's figures.
The retailer expects that adjusted operating margins for H2 2025 might fall short of those achieved in H1 due to singular items that positively impacted the first half of the year.
