Primark sales up to Christmas show 19% jump

Primark has enjoyed another strong Christmas as demand for its discount clothing showed little sign of abating. Parent company Associated British Foods reported that Primark's total sales in the last four months of 2009 were 19% higher than a year ago, "ahead of expectations". ABF declined to give a sales figure that stripped out the impact of new store openings in the UK and Spain. Jeremy Batstone-Carr, analyst at Charles Stanley, estimated that Primark's like-for-like sales rose by 6%. ABF said the weak pound had pushed up the cost of goods from America, resulting in a drop in gross margins at Primark. Sterling's weakness has helped other parts of ABF, though, making its sugar more competitive overseas. It also reported a 4% rise in sales at its grocery arm, whose brands include Twinings tea and Ovaltine. Shares in ABF rose by 1.8% today, gaining 15.5p to 875p.