The Sales Of The First Nine Months Of The Primary Increased By 7%, But Will Be Affected By Brexit

Britain is cheap Clothes & Accessories Retailer Primark achieved a sales growth of 7% in the first 40 weeks (i.e. the first nine months of this fiscal year) as of June 18. Associated British, the parent company of the brand Foods PLC (ABF. L) British Union Food Group said that it would continue to focus on the expansion of Primark even after Brexit.

As the Associated British Foods PLC no longer expects the adjusted EPS of the whole year to decline from the previous year, Associated British Foods PLC (ABF. L) surged up to 9.2% to 2795p on Thursday morning.

Associated British Foods PLC predicted that the devaluation of the British pound to a 31 year low would not affect Prime Sales are affected, but since the purchase is settled in US dollars brand The profit margin of the UK business will suffer, but these negative effects will be offset by the increased profit margin of the sugar sector and overseas markets due to the weakening of the pound.

　　Primark The 11 new stores during the third quarter became the main driving force for sales growth, while comparable sales were under pressure due to "unpredictable weather conditions", especially the unusually cold weather in Europe in April. By the end of the fiscal year in August, Associated British Foods PLC will also add 300000 square feet of sales area for Primark, including two new American stores in Philadelphia and New Jersey, and Creteil in Paris Stores will also double.

　　Associated British Foods PLC British Union Food Group did not provide more referential same store sales data, but the growth rate in the first nine months was equal to 7% in the first half of the year, while the same store sales recorded a decline of less than 1% in the first half of the year, which means that the same store sales continued to decline in the third quarter. Morgan last month Stanley (NYSE: MS) Geoff Ruddell, Morgan Stanley analyst It has been predicted that the same store sales of the brand throughout the year will decline for the first time in more than 15 years. He said he was not clear about the Primary The reason for the significant slowdown in sales is certainly related to structural factors, including the reduction of high street passenger flow and the trend of purchase behavior Electronic Commerce Transfer, etc. As Primark's growth slows, Associated British The dependence of Foods PLC British Union Food Group on the gradual improvement of the sugar sector has increased.

Also today, Marks&Spencer Group PLC (MKS. L) M&S It also said that the same store sales of clothing business fell 8.9% in the first quarter up to July 2, the largest decline in the past decade. H&M Hennes&Mauritz AB (HMb. ST) During the second quarter from March to May, the sales increased by 5% year-on-year at the local exchange rate, Credit Suisse Group AG (VTX: CSGN) Credit Suisse estimated that the same store sales of the group dropped by 5.3%, and the management of the group blamed the abnormal rainy and cold weather in major European markets in March and April for curbing the demand for spring clothing.

As for the unstable factors brought by Brexit to the business environment and financial market, its business covers 48 markets around the world British Union Food Group pointed out that its financial strength is strong and it is optimistic about sustainable growth.

　　Associated British Foods PLC(ABF.L) It rose 8.77% to 2777p in afternoon trading, and the stock has fallen 16.9% so far in 2016.