( ) just lowered its Primark growth forecasts, and the share price dropped a few percentage points in early trading. In its 23 January update, the company posted a 0.5% rise in revenue for the 16 weeks to 4 January, at constant currency.
At actual currency rates, it fell 2.2%. Revenue in the period was split 50/50 between the firm’s Primark fashion/lifestyle retail arm and its food-related businesses.
Eyes on Primark Primark saw a 2% total sales rise in the period. Like-for-like sales, however, fell by 1.9%.
Sales were backed by “ ” Though like-for-like sales in the UK and Ireland grew over Christmas, the full period saw a decline. According to Kantar data, Primark’s market share dipped a little to 6.8%, which still seems healthy.
The update added: “ “. That led the board to downgrade its full-year guidance for Primark, now expecting “ “. Adjusted margins should remain about the same.
Sentiment The Associated British Foods share price is down 13% in 12 months, and 27% over five years, which doesn’t surprise me. I’d expect retail stocks like this to follow the general economy, though with ABF I see defensive strength. Doesn’t that mean this could be a good time to consider buying? and have both cut their ratings on the stock in the past week.
So the share price is down, the company has lowered its full-year guidance, and we have analysts turning bearish. That combination makes me think this could be a stock for contrarian investors to consider. At least, .
