Primark, the British discount apparel chain, continued its growth in its most recently completed two quarters, reporting a 55 percent increase in operating profit over the six months ending March 2, 2013.
Primark’s performance helped drive a 20 percent increase in the profits of parent company Associated British Foods Plc (London).
Despite rough going for most U.K. retailers, Primark enjoyed a 7 percent same-store sales gain during the half while while its margins rose to 11.9 percent. Many British retailers have been finding the going tough as consumers fret over job security and a squeeze on incomes.
But parent company AB Foods said it expected moderation in Primark’s growth going forward amid higher cotton prices and a weak economy.
AB noted Primark's already weaker trading during a prolonged British cold spell. But it remained optimistic about Primark’s prospects.
“Seven percent like-for-likes are clearly extraordinary, even if it comes off a bit through the second half we will be the stand out retail performer in the UK market,” ceo George Weston told the Reuters News Agency.
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