Primark’s first-half operating margin was 11.7 per cent. This beats last year’s 9.8 per cent as a weaker US dollar, better buying and tight stock management all helped. Primark’s full-year sales are expected to be five per cent ahead of last year, with particularly strong sales growth in Spain, France, Italy and Belgium.

Primark is one of the strongest names in value-focused fashion. Q4 sales growth has been faster than in the previous nine months of the financial year due to an improving like-for-like performance. Primark performed well in the UK even though the country’s fashion market has been weak. Its new store in Birmingham High Street showcases its full product range and new food and beverage and beauty services. The group continued to deliver a significant gain in market share, with sales growth of three per cent and a like-for-like sales decline of one per cent.

The contribution from its new European stores exceeded its expectations. But eurozone like-for-like sales fell by three per cent with a weak performance in Germany. While the American business remains loss-making, the firm’s increased sales and the lower operating costs due to the selling space reduction in three stores will result in a significantly reduced US operating loss.