The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — Associated British Foods said on Monday it would deliver first-half revenue growth in all of its businesses, other than sugar, helping it to deliver earnings per share broadly in line with the previous year.
The group, which owns the Primark clothing chain as well as major grocery, agriculture and ingredients businesses, said it expected a small reduction in adjusted operating profit for the 24 weeks to March 2, offset by lower net financial expenses.
AB Foods made an adjusted operating profit of £648 million ($846.9 million) in the first half of its 2017-18 year, with adjusted EPS of 61.3 pence.
For the full 2018-19 year the group's outlook was unchanged with adjusted operating profit and adjusted EPS expected to be in line with 2017-18's outcome.
ADVERTISEMENT
The group said Primark's first-half sales were expected to be up 4 percent, with increased selling space partially offset by a 2 percent decline in like-for-like sales.
With a much higher margin, Primark's profit was expected to be "well ahead" of the same period last year.
The group said early trading of Primark's new spring/ summer range had been "encouraging".
AB Foods cautioned last year that profit in its sugar business would be significantly lower this year reflecting lower EU sugar prices for contracts negotiated at the end of the last financial year.
By James Davey; editor: Kate Holton.
Canada, France and Ireland are among the countries working with home-grown fashion talent to create uniforms for their teams at this summer’s Olympic Games. For these small labels, it’s an unprecedented opportunity to capitalise on one of sports’ largest events.
The online fashion retailer plans to update China’s securities regulator on the change of the initial public offering venue and file with the London Stock Exchange as soon as this month, a person with knowledge of the matter said.
The company, under siege from Arkhouse Management Co. and Brigade Capital Management, doesn’t need the activists when it can be its own, writes Andrea Felsted.
As the German sportswear giant taps surging demand for its Samba and Gazelle sneakers, it’s also taking steps to spread its bets ahead of peak interest.