Executive Summary

• Associated British Foods (ABF), the owner of Primark, reported total revenue growth of (2)%, or 3% at constant exchange rates, for its first fiscal quarter ending January 2, 2016.
• Primark’s quarterly sales were up 3%, or 7% at constant exchange rates.
• Operating margins were lower year over year as a result of the stronger US dollar; Primark sources much of its merchandise in dollars. But the reduction in margin was less than anticipated due in part to a “well-managed stock position” that resulted in fewer markdowns.