Robust retail expansion drives sales and profit growth at Primark

Primark’s revenue growth in 2024 was 6 percent to 9.4 billion pounds with like-for-like sales growing 1.2 percent. The company reported 51 percent growth in adjusted operating profit to 1.1 billion pounds, with margin recovery to 11.7 percent, up from 8.2 percent in 2023.

For 2025, Primark is targeting mid-single digit sales growth as the company continues to execute store rollout programmes in Europe and the US with focus on like-for-like sales growth in the more mature markets.

Commenting on the annual trading results, George Weston, chief executive of Associated British Foods, said: "This was a year of very strong financial and operational progress across the group. Primark achieved good sales growth this year and I am particularly pleased with the significant recovery in margin. Significant white space for new stores remains across Europe and the US, which we expect to help drive sustainable growth over the medium and long term.”

Highlights of Primark’s full year results across geographies

Most of the company’s key categories including women’s, men’s and kidswear performed well, while growing presence in categories such as home and accessories.

In Spain and Portugal, which accounted for 17 percent of sales, sales grew by 6 percent, reflecting sales contribution from space expansion and execution. During the year, Primark opened five new stores in Spain. This included four stores in Madrid, where it now has 12 stores in total.

In France and Italy, which accounted for 16 percent of sales, sales increased by 12 percent in the year driven by a strong sales contribution from new stores. The company opened three new stores in France and two new stores in Italy.

In Central and Eastern Europe, which accounted for 3 percent of sales, sales grew 42 percent. The company opened three new stores in the year, including its first store in Hungary, one store in Poland and one store in Romania.

In the US, which accounted for 5 percent of sales, sales grew 30 percent. Primark opened six new stores in the year, including a second store in Florida and first stores in Virginia, North Carolina and Michigan. The company also opened a new distribution centre in Jacksonville, Florida, which will support its continued expansion in southern states. The company continues to execute the store rollout programme, with 14 leases for new stores now signed, including the first store in Manhattan, New York, which will be the 11th store in New York state.

In the UK and Ireland, which accounted for 47 percent of sales, full year sales grew 2 percent with like-for-like sales growth of 0.7 percent. For 2024 as a whole, like-for-like sales in the UK grew 1 percent. In the UK and Ireland, the company opened three new stores and extended two existing stores in the UK, right-sized one store and relocated two stores.

In our Northern European markets, Germany, the Netherlands, Belgium and Austria, which accounted for 13 percent of sales, sales grew 3 percent. In Germany, Primark restructured its store footprint with three store closures and three right-sizes in the year.

As at September 14, 2024, Primark was trading from 451 stores across 17 markets. During the year, the company opened a total of 22 new stores and closed three stores.