Associated British Foods said underlying sales at its Primark clothing business are expected to be down around 2% in its second half, with an improved performance in the UK and Ireland offset by a subdued consumer environment in Europe.
“Looking ahead, we currently expect the consumer environment to remain uncertain,” the group said.
It said like-for-like sales for the last six months in the UK and Ireland were expected to be close to flat, helped by favourable weather, and improving from the 6.0% fall recorded in the first half of its financial year.
In Europe, while sales rose in Spain, Portugal and in Central and Eastern Europe, they fell in France, Italy and Germany.
Primark saw strong sales growth in the United States.
The group said in its food businesses, which include grocery brands such as Twinings tea, Jordans cereals and Ovaltine drinks, overall trading in the second half was in line with its expectations.
Last month, AB Foods bought the Hovis bread brand. It also said it was closing its Vivergo bioethanol plant after the UK government refused financial support.
(Reporting by James Davey）
