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Dressing up at Primark helps AB Foods

The discount retailer has seen improved performance in recent weeks following a weaker-than-anticipated Christmas.
February 23, 2016

Slightly improved trading following the Christmas slump at discount retailer Primark means like-for-like sales should now be flat. As such, parent group Associated British Foods (ABF) now only expects a "marginal decline" in earnings per share compared to the "modest" one it projected in January. It plans to open more stores in the US but we still feel it is too early to judge the success of this.

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The numbers are also being helped by the recent weakening of sterling against the euro, leading the group to predict a negative currency impact of £10m rather than £25m.

Elsewhere, sugar prices improved but it noted the UK bakery market remains "intensely competitive" for its grocery division.