Primark anticipates a reduction in its operating margins during the next fiscal year


EP

LONDONUpdated:

The British multinational AB Foods, parent of Primark, has warned that it calculates that the operating margins of the clothing chain will be reduced during the next fiscal year due to the rise in the dollar and the depreciation of the pound sterling. Specifically, the company has advanced that the variation in currency exchange rates "will increase the cost of goods during the next year."

However, AB Foods has also anticipated some "mitigation" of this rise in costs due to the reduced price of some materials and the "favorable" effect of exchange rates in the countries of origin of the raw material.

During the first half of the fiscal year, ended in March, Primark's operating margin stood at 11.7%, compared to 9.8% in the same period of the previous year, due to the weak dollar. In the same way, the rise in the 'greenback' registered between March and September will negatively impact the margins.

On the other hand, AB Foods has indicated that in the whole of its fiscal year, which ends on September 14, it will record an increase in turnover in Primark of approximately 4%. However, this progress corresponds to the opening of new stores, since comparable sales will fall by 2%.

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