Primark’s adjusted operating profit fell 12% at constant currency in the year to 12 September 2026, as higher markdowns and investment in pricing, marketing and digital capabilities weighed on margins despite sales growth from new stores.
Owner Associated British Foods (ABF) reported Primark sales of £9.82 billion for the 52 weeks ended 12 September 2026, up 2% at constant currency and 4% at actual exchange rates.
Adjusted operating profit fell to £1.005 billion from £1.126 billion, down 12% at constant currency and 11% at actual exchange rates. The adjusted operating margin declined to 10.2% from 11.9%.
New stores contributed five percentage points to sales growth, while like-for-like sales declined 2.6%. Primark ended the year with 508 stores across 19 markets, having opened its 500th store in September.
UK like-for-like sales increased 0.5%, with total sales up 2% at constant currency. Continental European like-for-like sales fell 4.7% and total sales declined 1% at constant currency, reflecting weak consumer sentiment and an earlier stage of commercial recovery.
Investment in Primark’s customer proposition, marketing and digital capabilities supported UK performance, with Click & Collect contributing to growth.
Lower underlying sales and associated higher markdowns weighed on profit, alongside increased investment in price, product, marketing, digital initiatives and technology. Primark cut prices across hundreds of key lines in July. Currency movements benefited the margin, while supply chain, store and central cost efficiencies offset inflation.
The results follow January’s lowered outlook, when sales growth fell below expectations. ABF said then that Primark’s annual margin could be approximately 10% if trading trends continued into the second half, as investment in growth continued.
George Weston, Chief Executive of Associated British Foods, said: “In Primark, we took significant steps to re-energise our customer proposition this year, both enhancing our product offer and strengthening our value credentials, underpinned by increased investment in marketing and digital engagement.”
He added: “We are now building on what has worked well and applying the same focus and investment in our European markets and other product categories.”
Primark has also committed to home delivery in Great Britain, acquiring in Sheffield a fulfilment facility that is highly automated to support the future service alongside the expansion of Click & Collect.
Primark expects an adjusted operating margin of approximately 10% in 2027, excluding expected dis-synergy costs as it prepares for demerger. Space growth is expected to add around 4% to sales growth, with guidance reflecting a 53-week financial year.
The planned separation from ABF remains on track for December 2027. The standalone food business will be called AB Foods.