Strong demand for collection designed with singer Rita Ora boosts Primark

In the UK, comparable store sales rose by 3.8 per cent as it said strong growth in the run-up to Christmas helped offset a knock from unusually warm autumn weather at the start of the quarter.

The group said the Primark sales rise was driven by higher average selling prices as well as strong demand for Christmas ranges and lines such as its collection designed in collaboration with singer Rita Ora.

It said it did not expect “significant disruption” from the Red Sea shipping attacks, despite many rivals flagging worries over stock delays and cost hikes.

AB Foods said: “We continue to monitor the situation in the Red Sea but at this stage we do not expect any significant disruption to our supply chain.”

It said improvements in profitability across the Primark business “should insulate us well against potential additional costs of supply due to the disruption in the Red Sea should they arise”.

The group delivered a record UK market share over the three months to December 10, at 7.1 per cent, according to recent Kantar data.

Trading elsewhere in Europe was more patchy for the retailer as like-for-like sales edged up 1.3 per cent, with sales in some countries impacted by local economic woes and strong trading from a year ago.

It said new store openings helped boost its performance in the US, where total sales rose 45 per cent.

The wider group – which also runs large grocery, ingredients and agriculture operations – is on track for “a year of meaningful progress” in profitability, according to AB Foods.

Overall group-wide revenues lifted 5.4 per cent to £6.9bn in the first quarter to January 6.

Richard Hunter, Head of Markets at interactive investor, commented: “Primark remains the engine of growth for the business, with its value offerings still hitting the spot with an increasingly cost-conscious consumer.

“Despite a slow start to the quarter given some unseasonably warm weather, Primark was back with a bang for Christmas. Womenswear and menswear were particularly strong, with the Christmas ranges proving popular.”

"At this stage, AB Foods expects the impact of events in the Red Sea to have limited disruption to its supply chain and will monitor the situation. In the meantime, the group has pointed out that the improvement in product margin which Primark is currently enjoying should insulate the group against the costs of such supply chain disruptions, should they arise. Stock levels are currently in a healthy position and the store opening programme and incremental improvements to its offering, particularly online, offer an enticing glimpse into what could be another year of strong recovery at the retailer, where so many competitors are finding the going increasingly tough.