Primark (LSE: ABF) FY19 Pre-Close Trading Update: On Track for Full-Year Margin Increase but FY20 Will Be Tougher

Executive Summary

• Primark’s parent, Associated British Foods (ABF), reported its FY19 pre-close trading update on September 9. This report focuses on Primark, the company’s retail division.
• Primark FY19 comps were down 1% in the UK, down 3% in the eurozone and up (by an unspecified amount) in the US. Management expects to report a full-year increase in operating margin.
• Management expects to see a reduced margin in FY20, due to the strengthening of the dollar and the weakening of the pound.