Executive Summary

• Primark’s parent, Associated British Foods (ABF), reported its FY18 pre-close trading update on September 10. This report focuses on results for Primark, the company’s retail division.
• Primark guided its FY18 sales to grow 5.5% year over year on a constant currency basis, driven by an increase in selling space, offset by a 2% decline in same-store sales.
• The company expects its operating margin for FY18 to be 11%, well ahead of the 9.8% reported in 1H18 and last year’s margin of 10.4%, led by favorable exchange rate movement.