Penneys owner says warm weather stalled winter sales

Associated British Foods said on Thursday unusually warm winter weather meant sales at its Penneys/Primark discount fashion chain stalled in the nine weeks to January 2nd.

Shoppers avoided buying winter clothes during some of the mildest November and December temperatures, with retailers Next and Marks and Spencer blaming the weather for disappointing sales before Christmas.

Primark posted weaker sales at shops open more than a year in the nine weeks to January 2nd, said AB Foods, which also has a major sugar business.

The company said that on a total sales and constant currency basis Primark’s sales climbed 7 per cent in the 16 weeks to January 2nd.

For its 2015/16 financial year, AB Foods said it was sticking to its current outlook for a modest decline in adjusted operating profit, brought about by currency pressures.

Reuters