Related British Meals on Thursday mentioned revenue in its subsequent monetary 12 months can be lower than forecast as a strengthening greenback raised prices at its Primark retail chain.
Primark sources most of its clothes from south Asia and the default pricing forex is the greenback, which on Wednesday hit a 37-year excessive in opposition to the pound and has additionally strengthened in opposition to the euro.
In a buying and selling replace, the group mentioned it was additionally dealing with a lot larger vitality prices throughout its shops and had made a “business determination to restrict additional pricing actions” within the subsequent monetary 12 months, which begins on October 1, as UK shoppers confronted a squeeze on their incomes.
Consequently, working revenue margins at the moment are anticipated to be decrease than within the second half of the group’s present monetary 12 months, which ends in September. There are not any modifications in group revenue expectations for the present 12 months.