Primark (LSE: ABF) FY16 PRE-CLOSE TRADING STATEMENT: NEGATIVE COMPS AND MARGIN COMPRESSION EXPECTED AT PRIMARK

Executive Summary

• Primark’s owner, Associated British Foods (ABF), reported a pre-close trading statement for its FY16 results, the period ending September 17, 2016. Detailed full-year results are expected to be announced on November 8, 2016.
• Primark revenues are expected to increase 9% year over year at constant currency for FY16 and reported sales are expected to increase 11% year over year. Comparable store sales are expected to decrease by 2% year over year in FY16.
• Primark’s FY16 operating profit margin is expected to be close to that achieved in 1H16, which was 11.7%, down 90 basis points from 12.6% in FY15.