Primark and Asos show the way with storming figures
The discount fashion chain Primark and online specialist Asos posted strong sales yesterday, reinforcing their status as two of the retail sector's best performers in recent years.
Primark, the discount fashion chain owned by Associated British Foods (ABF), put another nail in the coffin of its collapsed rival, Peacocks, with a 16 per cent jump in revenues over the 16 weeks to 7 January.
Meanwhile, shares in Asos rocketed by nearly 18 per cent to £17.60p yesterday after it unveiled a leap in gross margins, although an improvement in its UK sales was outshone by barnstorming overseas growth.
John Bason, the finance director of ABF, the sugar-to-grocery conglomerate, declined to comment on yesterday's administration of Peacocks, but said Primark had "taken [market] share" from across the sector over the 16 weeks to 7 January.
Primark, which has 232 stores in Europe, grew total sales by 16 per cent over the period, boosted by new stores. Credit Suisse estimated that Primark's like-for-like sales grew 2 per cent, with a "soft autumn" more than offset by a storming Christmas.
Industry experts believe that, while the fate of Peacocks was ultimately sealed by its £240m of debt, the chain struggled to compete against Primark. But Primark said its operating margin was lower, reflecting higher cotton prices.