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(Reuters) – LONDON, July 1 (Reuters) – Associated British Foods (ABF.L) boosted its full-year profit forecast for its Primark clothes division on Thursday, citing sales at stores that reopened following COVID-19 lockdowns in the most recent quarter, which outperformed management forecasts in all markets. Primark’s revenue increased to 1.6 billion pounds ($2.2 billion) in the third quarter to June 19, up from 0.6 billion pounds in the same period last year, following the reopening of all stores and the launch of seven new locations, according to the company. According to the company, several new sales records were set, and like-for-like performance was substantially improved over prior periods during the epidemic, indicating a boost in customer confidence and desire to spend. Primark’s like-for-like sales increased 3% year over year in the third quarter, while volatility remained high and performance varied by location based on the extent of COVID-19 restrictions that remained in effect. Data for the whole UK clothing market, which includes online sales, during the seven weeks after the reopening showed Primark gaining both volume and value share on a two-year basis, according to the company. AB Foods now has greater expectations for Primark’s fourth-quarter revenues, and its full-year sales prediction has risen in tandem. Primark’s adjusted operating profit for the full year 2020-21, before payback of government employment retention plan funds, is now projected to be substantially in line with 2019-20, versus earlier forecast of “slightly lower.” AB Foods also owns operations in sugar, grocery, agricultural, and ingredients. The company’s full-year expectation for adjusted operating profit is now in line with the previous year’s result. James Davey contributed reporting, and Kate Holton edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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