Primark Delivers Resilient Third Quarter as New Store Openings Offset Soft Demand

Primark has become a useful case study in how a value-focused retailer can navigate a difficult consumer environment. The UK-based fast-fashion chain, owned by Associated British Foods, reported a 4% increase in third-quarter revenue for the 16 weeks ending June 20, 2026, reaching £2.9 billion (€3.38 billion). On a constant-currency basis, growth was 3%. The headline figure looks solid. The underlying picture is more mixed.

New store openings were the main driver. They contributed 5 percentage points to growth, reflecting Primark’s continued expansion in Europe, the United States, and the Middle East. That expansion masked weakness in like-for-like sales, which declined by 2.2% during the quarter. In other words, Primark grew because it opened more doors, not because it sold more per store.

George Weston, Chief Executive of Associated British Foods, struck a measured tone. “The Group delivered a resilient trading performance in the third quarter,” he said. “While the retail environment remained challenging in most markets, Primark continued to strengthen its customer proposition, including new product launches, a sharper focus on price and increased investment in marketing, particularly digital. We are making good progress and there is more to come.”

Regional performance varied sharply. In the UK, sales rose 1%, with like-for-like sales broadly flat. Trading was strong in March, slowed in April and May due to geopolitical tensions and poor weather, and recovered in June. In continental Europe, sales fell 1% year-on-year, with like-for-like sales down 3.6%. Weak consumer confidence forced the retailer to sharpen its value proposition and increase digital marketing.

The standout region was the United States, where sales jumped 16%, helped by three new store openings including the company’s first Manhattan location. The franchise business in Dubai and Kuwait also performed strongly. Primark has long seen the US as a major growth opportunity, and the latest numbers suggest the brand is gaining traction with American consumers.

Year-to-date, Primark reported total revenue of £7.57 billion (€8.83 billion), up 4% on a reported basis and 2% on a constant-currency basis. Like-for-like sales over the same period fell 2.5%. The company maintained its guidance for an adjusted operating profit margin of approximately 10% for the full year, despite what it described as a challenging consumer environment including the impact of the Middle East conflict.

For the footwear and accessories industry, Primark’s results carry signals. As one of Europe’s largest clothing and footwear retailers, its purchasing decisions influence suppliers across the value chain. The fact that Primark is expanding while competitors retrench suggests continued demand for value-priced fashion footwear and accessories, even as premium segments struggle.

The broader lesson is that scale, expansion, and price discipline can offset soft underlying demand. Primark is not immune to consumer weakness, but it is managing through it better than many peers. In a retail environment defined by caution, that counts as a win.

Source: World Footwear (worldfootwear.com)