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STRONGER-THAN-EXPECTED sales at the Primark and Penneys chains have sent profits at the chain’s parent company higher than expected.
Profits in the retail arm of Association British Foods, which encompasses Primark and its Irish brand Penneys, rocketed by 55 per cent – jumping from £154 million to £238 million (€279 million) for the first half of the 2012-2013 financial year.
Sales at the chain grew by 23.6 per cent, to just under £2 billion.
“The Primark success story continues,” ABP company chairman Charles Sinclair said in a trading update to shareholders today.
“Trading in the period was very strong, the profit margin was much improved, customers in continental Europe have taken enthusiastically to the Primark brand and there is very real momentum in the addition of selling space,” he added.
The group said Primark’s performance was “exceptional” during a difficult time on many high streets around Europe.
He said the enthusiasm of shoppers to the Primark brand meant that heavy investment in the chain would continue. Among those investments would be the opening of the first Primark stores in France.
Sinclair said Primark’s strong growth would continue for the rest of the year, though not at the same level as the first half of the company’s trading year, when cotton prices had been particularly low.
Overall group revenue at Associated British Foods plc grew by 10 per cent to £6.333 billion (€7.423 billion), leaving adjusted profits up by 20 per cent.
Shares in ABP trading in London were up by 5 per cent following the news.
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Pennyes started in Mary’s street in Dublin and now has 38 stores in Ireland and 257 world wide. An Irish success story but controlled by the Canadian family The Weston’s
The Primark Success story continues on the back of child labour in Asia. Who cares as long as we can get jeans for €10 and 3 t-shirts for €5.
Sure aren’t they lucky to have a job! Look at all the lay offs in the private industries over here!
With all do respect all the Nike, Abercrombie and Underarmor I’m wearing are sewn are sewn together by children at the opposite side of the same factory and cost hundreds of dollars.
Better to pick on the companies that can afford it in their bottom line no?
begrudgy, people just don’t care where their cheap child labour tat comes from as long as its cheap! sad but true! jobs been Lost left right and centre in Irish owned retailers because of this muck! but who cares!
Could you post the link to the story of the child labour Penneys are using, would like to make informed decisions
when it comes to spending my money
Don’t for get socks and jocks they are so cheap they are all most disposable!!
Penny’s and primark are both Irish companies, owned by and Irish business man who built them from the ground up so I say fair play to him! And long my they continue!!
@ha?: You say that “jobs been Lost left right and centre in Irish owned retailers because of this muck!” This makes no sense on many grounds. First, Penneys is more Irish than pretty much any of the major clothing chain stores in Ireland. It has its international heaquarters in Ireland (covering Ireland and the six other continental European countries in which it operates). It is at least as Irish as Brown Thomas (and both are in fact ultimately owned by the same Canadian family, the Westons), it is more Irish than Clerys or Debenhams or most of the smaller clothing stores on our main streets, such as Oasis etc. The key point is that the headquarters is here and it has over 30 stores in Ireland, creating lots of employment. Don’t know what your point is.
Price is determined by quality of fabric and fit not the factory it was manufactured in.
Not true, thats just an assumption. Primark/Penneys has one of the most recognised and awarded ethical standards on the high street. Do your homework.
Re-read my comment and the comment it was i response to. Homework
Conor Kelly, my comment was directed at Begrudgy, not you
It must be great to be able to lecture us poor people on spending money in Penneys. It is all I can afford and I am glad they are there. Keep it up Penneys.
Quality in Penny’s has really improved over the years, great variety, great prices and delighted to see one retail store doing well.
An Irish chain successfully gone global . I say well done .
NOT Irish owned anymore folks!
The companies HQ is in Dublin
We have turned into a nation of Penny Pinchers
They are brilliant for baby and children’s clothes. I don’t like to buy expensive stuff when they Will have grown out of it or stained it in about a month
Is a shame that or successful irish brands all seem to be sold to foreign companies. …primark, guinness etc…. at least Ryanair is true to its roots regardless of the carry on of o Leary
Marc Ryanair is listed on the London and Dublin stock exchange so the owners could be located anywhere in the world
You’re mixing up cause and effect…they are successful BECAUSE they are bought by companies with the financial resources and management expertise to grow them and enter international markets.
Look no further than the failed Quinn group for an example of a ‘successful’ genuine Irish company that tried to take their brand international on borrowed money and with no clue what they were doing…
There clothing is better finished that most other shops such as river island, H & M and Next etc. Was in the other day shopping and the treads and other bits hanging off some of the clothing was ridiculous. Or maybe that’s fashionable these days to wear unfinished clothing. Am I out of the loop?
I guess the reason their sales are surging ahead is because the quality of produce is so poor and nowadays people have so little money in their pockets that they just go back for more off Pennys.
I got this & I got this & 2 of these & 5 pairs of socks…all for €20 !!! I love Penney’s :-)
Their quality is a lot better than it used to be and still slit better than stuff at twice the price
I used to shop in my local Penneys but not anymore their clothes are cheap and tacky
Not forgetting their responsible for that wonderful fashion statement we have at the moment!!! pyjamas!!!! lovely! roll out of bed and straight out the door!
Penny’s invented pyjamas? Wel I never …..
no, they invented cheap pyjamas! you see them every day about town! lovely they are, especially with the slippers to match! fag in gob and nice ponytail with matching hair bobbin. classy ladies!!!!!!
Can anyone explain why the ladies pyjamas section is larger than the menswear in most stores?
What are you doing hanging around the ladies pyjama section?
It’s the largest ladies pyjamas section in Ireland I understand
Why thank them for making a profit?
Yay Penneys is coming to France!!
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