This textile chain owned by Primark Associated British Dishesannounced this Tuesday that it was registered adjusted operating profit of £414m (€491m) in the first six months This means that the 43 million lira result of the fiscal year (October-March) recorded in the same period of the previous year is almost multiplied by 10. The figure represents a 29% increase in earnings of £321m (€381m) for the last full year, impacted by closures and product sourcing difficulties. Despite the improvement in results, the company assured that it was prepared to raise prices due to rising costs, as most of the clothing they sell comes from Asia. “Inflationary pressures are such that we cannot offset them all with cost savings.That’s why Primark will apply selective price increases on a portion of its Autumn/Winter stocks,” said George Weston, CEO of Associated British Foods.
The result is the main reference fast fashion and ‘low cost’ It is willing to betray its own model after improving profitability levels and scaling towards new ways of business positioning. In this way, the Galician firm’s business model is far removed from Primark’s, but mimics Inditex, which announced in its final results presentation the possibility of 2% price increases to cushion the impact of cost increases. This British multinational low-cost fashion company Acknowledges that a reduction in operating margin is expected in the second half, which “reflects new inflationary pressures”, with an operating margin of 10% for the full year. The threat of higher inflation and the strengthening of the dollar are urging the British multinational to raise the prices of its products in order to achieve pre-pandemic results 6% higher than what was available.
In the first half of your fiscal year, Primark reached a sales figure of 3,540 million pounds (4,203 million euros), which is 58.6% higher than the same period of the previous year. The chain’s improved year-over-year results reflect that all Primark stores were operating at the end of the period and, with minor exceptions, remained open for six months amid extended periods of closure in the UK and Europe. in the first half of last year.
The chain also highlighted progress in transforming its digital capacity with the launch of a new UK website in early April with the aim of making the new website available in all Primark markets by autumn. Likewise, the multinational continues to move forward with its goal of expanding its network of establishments to 530 new stores over the next five years.
Many of Primark’s good results, Sales in the United States, France, Italy and Iberia. The chain plans to increase its revenues in the new markets of Romania and Slovakia in the current financial year, which will expand the firm’s international presence to 16 different markets.
Source: Informacion
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