Primark owner issues 'unlikely' warning with millions of shoppers warned

Primark owner’s shares have dropped after sales fell amid Donald Trump's tariffs and fears over the economic outlook.

Primark posted a 6% decline in like-for-like sales in the UK and Ireland in the 24 weeks to 1 March, the company has warned. Primark owner’s shares have dropped after sales fell amid Donald Trump's tariffs and fears over the economic outlook.

“Sentiment is unlikely to improve as markets continue to face uncertainty and instability following recent tariff announcements by the US, retaliatory actions by China and the risk of further tariff trade wars,” ABF - the Primark owner - said. “Consumer confidence could deteriorate further as a number of countries, including the US, face the risk of recession that could increase individuals’ debt problems.”

The warning came as Primark posted a 6% decline in comparable sales in the UK and Ireland in the 24 weeks to 1 March, despite strong sales growth over the Christmas period. Its share price fell by more than 9% in early trading, and were later down by 6.5%.

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Primark’s overall sales grew by 1%. ABF’s group revenues dipped by 2% to £9.5bn and adjusted profit before tax fell by 10% to £818m, as its sugar division struggled and made an operating loss after a sharp fall in prices.

George Weston, the ABF chief executive, said: “De minimis imports in the US are very, very large, they supply a lot of Americans who don’t know about Primark yet but are looking for value.

"With prices going up from this part of the trade, I wonder if some Americans might start going back to shopping centres to find value there.”

“We are having constructive discussions with the UK government to explore regulatory options to improve the position,” it said. “There is no guarantee that these discussions will be successful, and we will either mothball or close the Vivergo plant if necessary.”

Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, said Primark’s revenue was “struggling to gain momentum” but recent good weather could improve footfall and sales.

However, he added that the chain was “relying on overseas growth to prop up performance”.