Irish fast fashion retailer Primark, expects annual profits to be better than 2020.The Dublin-based retailer stated that, its sales in the second half of 2021 is estimated to be £3.4 billion.
Besides, the retailer expects its operating profit margin in the second half to be more than 10 per cent.
Significantly, Primark’s forecast for full-year consolidated operating profit was given before the job retention scheme was reimbursed, which is now ahead of the 2020 profit.
Thanks to strong business in the UK and other European countries.
Because of this, Primark has seen sales equal to its Q3 like-for-like sales to be 3 per cent ahead compared to what it was during the same quarter two years back.
In the Q4, however, the like-for-like sales are expected to be 17 per cent lower than Q4 two years ago – all thanks to changes in public health measures in major markets to stop the spread of Delta variant.
At the same time, 12 weeks of data from May 31 to August 22 in the UK clothing, footwear and accessories market shows that Primark had the same price share of the total market compared to the same period in 2019.
Going forward, in addition to opening a new store in Philadelphia (the US) later this week, Primark plans to unveil new and improved customer-facing website in the next calendar year.
Also, there are efforts to strengthen its digital marketing capability.
Primark generated £7.79 billion in 2019, and is known for kidswear, womenswear, menswear, homeware and footwear, amongst others.