Penneys reports strong sales in trading update

RETAIL: THE OWNER of budget retailer Penneys has said strong sales since Christmas will make up for an unusually warm autumn.

Associated British Foods which owns the Primark chain, trading as Penneys in Ireland, said group results will meet estimates after all operations increased revenue.

At Primark, same-store sales are up about 2 per cent. Finance director John Bason said the retailer had “a cracking Christmas, and has started the new year well”.

Comparable store sales at outlets in continental Europe, including Spain and Germany, increased about 5 per cent, he said.

The company said margin for the six months would be hit by higher cotton costs, with these likely to fall in the second half.