In short
- Primark profit down 12%: adjusted operating profit at Primark fell to £1,005m for the 52 weeks to 12 September 2026, and the margin slipped to 10.2%, according to the annual results Associated British Foods (ABF) published at 7am on 3 November.
- UK shoppers kept spending: Primark’s UK sales rose 2% and UK like-for-like sales grew 0.5%, while continental Europe fell 4.7% on a like-for-like basis. Primark’s share of the UK clothing market reached 6.9%, according to Kantar data cited by ABF.
- Price cuts are the cause and the plan: the company says the profit fall reflects lower like-for-like sales, markdowns and “a significant increase in investment” across price, product, marketing and digital. It expects the Primark margin to stay at about 10% in 2027.
- Home delivery is still undated: ABF repeats that Primark will offer home delivery in Great Britain “in the future”, using a highly automated depot it bought in Sheffield in September. Click & Collect was “a key contributor” to UK growth.
- Group profit falls again next year: ABF expects group adjusted operating profit and earnings per share to be below 2026 in 2027, mainly because of losses in sugar, and says the Primark demerger is on track for December 2027.
Primark’s owner has reported a 12% fall in profit at the fashion chain, after a year in which it cut prices on hundreds of lines, spent more on marketing and digital services, and watched shoppers in continental Europe pull back. The UK was the exception. British shoppers bought more from Primark than a year earlier, and the retailer gained market share in a clothing market that ABF describes as difficult.
The results, published to the London Stock Exchange on Tuesday morning, also confirm the strategy Primark will take into Christmas and into its life as a separate listed company: lower prices, more marketing, Click & Collect, and eventually home delivery in Great Britain. Reuters reported that ABF “forecast another profit decline this year”, while Retail Week summed up the day as Primark’s profits falling “as it invests in price”.
This article sets out what ABF actually reported, how the numbers compare with what the company had guided, and what the results mean for anyone who shops at Primark in the UK or is waiting to order from it online.
What did Primark and ABF report on 3 November?
ABF’s annual results cover the 52 weeks to 12 September 2026. Group revenue was £19,582m, up 1% at actual exchange rates but down 1% at constant currency, compared with £19,459m a year earlier. Adjusted operating profit fell 13% to £1,508m, from £1,734m, which ABF describes as a 14% decline at constant currency.
The company said the fall was “primarily reflecting lower profit in Primark”. Adjusted earnings per share fell 11% to 156.0p, a smaller decline than profit because share buybacks reduced the number of shares in issue. ABF completed £253m of buybacks during the year and held the total dividend at 63.0p per share.
On a statutory basis, operating profit was £1,327m, down 11%, and profit before tax was £1,276m, down 10%. The gap between adjusted and statutory profit is explained by £113m of exceptional items, mainly £91m of non-cash impairment charges and £22m of restructuring costs, according to the announcement.
| Measure | 2026 | 2025 | Change |
|---|---|---|---|
| Group revenue | £19,582m | £19,459m | +1% (down 1% at constant currency) |
| Group adjusted operating profit | £1,508m | £1,734m | Down 13% (down 14% at constant currency) |
| Adjusted profit before tax | £1,457m | £1,696m | Down 14% |
| Adjusted earnings per share | 156.0p | 174.9p | Down 11% |
| Statutory profit before tax | £1,276m | £1,413m | Down 10% |
| Total dividend per share | 63.0p | 63.0p | Unchanged |
| Primark sales | £9.8bn | n/a | +2% |
| Primark adjusted operating profit | £1,005m | n/a | Down 12% |
| Primark adjusted operating margin | 10.2% | n/a | Lower, per ABF |
Source: ABF annual results announcement, 3 November 2026. Primark prior-year figures are not restated here because ABF reports the Primark changes on a constant currency basis.
Free cash flow was £652m, broadly in line with the £648m of 2025, helped by lower stock levels at Primark. Total net debt, including lease liabilities, rose to £2,845m from £2,629m, and ABF’s return on average capital employed fell to 12.7% from 15.5%.
George Weston, chief executive of ABF, said the results “reflect a challenging operating environment and macroeconomic headwinds”. He added that the group had “focused on what we can control, taking targeted actions to drive performance while making good operational and strategic progress and continuing to invest in long-term growth”.
On Primark specifically, Weston said the business “took significant steps to re-energise our customer proposition this year, both enhancing our product offer and strengthening our value credentials”. He said the UK and womenswear “delivered growth and outperformed our other markets and categories”, and that the company would now apply “the same focus and investment in our European markets and other product categories”.
Why did Primark’s profit fall when its sales grew?
Primark’s sales grew 2% to £9.8bn, but almost all of that came from new shops. ABF says new stores added 5% to growth, while like-for-like sales, which strip out the effect of openings and closures, declined 2.6%. In plain terms, Primark’s established shops sold less than a year earlier, and the company opened enough new space to more than make up the difference.
Profit fell faster than sales for three reasons set out in the announcement. Weaker like-for-like trading meant more stock had to be cleared through markdowns. Primark chose to spend more on lower prices, new ranges, marketing and digital services. And it continued to invest in technology “as we build capacity and scale”.
ABF says supply chain, store and central cost savings offset inflation, and that foreign exchange gave the margin a small boost.
The result was adjusted operating profit of £1,005m and a margin of 10.2%. That is close to the “approximately 10%” ABF had guided in September, so the margin itself is not a surprise. What the full results add is the explanation: the margin is lower because Primark has decided to give more value back to shoppers rather than protect profit in the short term.
The “Iconic Value” price cuts
The most important decision for shoppers came in July. ABF says Primark “invested in new, lower prices across hundreds of key lines while also improving quality, style, fit and the overall shopping experience”. The changes were launched across all markets and categories through a campaign called “Iconic Value”, timed to the arrival of autumn and winter ranges.
The company describes the early response as “encouraging everywhere”, with “positive volume growth in key lines including nightwear, leisure and performance wear”. It says it is “reasserting Primark’s position as the leader in disruptive value, combining style and quality with the lowest prices in the market”. ABF does not publish how much the price cuts cost, nor which specific products were reduced, so the size of the saving for an individual shopper cannot be calculated from the announcement.
ABF links part of the like-for-like decline to markdowns, the discounts retailers use to clear stock that has not sold at full price. In the UK, the company says the clothing market “remained difficult in the year, reflecting cautious consumer sentiment and challenging weather patterns”. It had told investors in September that prolonged hot weather delayed the switch to autumn ranges, as we set out in our preview of the Primark results and the questions for 3 November.
For shoppers, markdowns are the visible side of that problem: end-of-season rails and reductions that arrive earlier than planned. For Primark, they are a direct hit to margin, because the discount comes straight out of profit on goods that have already been bought.
How did Primark perform in the UK compared with Europe and the US?
The UK was Primark’s strongest major market. UK sales rose 2% and like-for-like sales grew 0.5%, slightly below the 0.6% ABF had guided in its September trading update. The company says it gained share, taking its slice of the UK clothing, footwear and accessories market, including online, to 6.9% over the 52 weeks to 13 September 2026, according to Kantar data cited in the announcement.
ABF attributes the UK performance to “our improved customer proposition and our investment in marketing and digital capabilities taking effect”. It names Click & Collect directly, saying the service “contributed to growth and increased the effectiveness of our marketing investments in driving footfall and sales”. Store openings, relocations and extensions also added sales.
| Market | Share of Primark sales | First half sales growth | Second half sales growth | Full year sales growth |
|---|---|---|---|---|
| UK only | 39% | +3% | +1% | +2% |
| UK and Ireland | 45% | +2% | +1% | +1% |
| Spain and Portugal | 17% | Flat | Flat | Flat |
| France and Italy | 15% | Down 2% | Down 2% | Down 2% |
| Northern Europe | 12% | Down 5% | Down 4% | Down 4% |
| Central and Eastern Europe | 3% | +13% | +7% | +10% |
| US | 6% | +12% | +14% | +13% |
| Primark total | 100% | +2% | +3% | +2% |
Source: ABF annual results, 3 November 2026, market summary table (constant currency). Northern Europe is Germany, the Netherlands, Belgium and Austria.
The UK slowed in the second half
The table shows a clear slowdown in Britain. UK sales grew 3% in the first half of the year but only 1% in the second half, which covered the spring and the hot summer. The UK market share figure also edged down from the 7.0% ABF reported at its interim results in April to 6.9% for the full year.
That does not undo the turnaround. In the 2025 financial year, Primark’s UK like-for-like sales fell 3.0%, so a gain of 0.5% represents a swing of three and a half percentage points. But it does mean the price cuts launched in July arrived at a point when British trading had already lost momentum.
In continental Europe, sales declined 1% and like-for-like sales fell 4.7%. ABF says consumer sentiment remained weak and that its brand, marketing and digital work is “at an earlier stage” than in the UK. France and Italy declined amid “very challenging market conditions and competitor intensity”, and Germany was singled out as “a very challenging retail market”.
The US grew 13%, with 14 new stores including a flagship in Manhattan, taking Primark to 47 American shops. ABF says the US was also difficult, “principally due to the effect of US tariffs on consumer sentiment, footfall and trading”, and that it will now consolidate its position there “before we expand again”. For British shoppers the practical point is simpler: the UK is now Primark’s model market, and the tactics tested here are being exported.
Is Primark launching home delivery in the UK?
Not yet. ABF’s annual results repeat that Primark will offer home delivery in Great Britain “in the future”, but they give no launch date, no delivery fee and no minimum order. Weston describes it as “our decision to introduce home delivery in Great Britain in the future”. A Welsh local news headline on 2 November presented a UK-wide launch as imminent, but the official announcement does not say so.
What the results do confirm is the infrastructure. “In September, we acquired a highly automated depot in Sheffield in the UK, which provides the fulfilment capability and capacity to both offer home delivery and continue growing Click & Collect,” the announcement says. ABF bought the site from Debenhams Group for £90m, as we reported when Primark confirmed home delivery for Great Britain in September.
Why Primark thinks the sums now work
For years Primark argued that delivering cheap clothes to individual homes would erode the low prices its shoppers come for. The results explain what changed. “The economics of home delivery have evolved over recent years, including the introduction of return policies, minimum basket sizes and delivery fees as standard, creating an opportunity for us to drive profitable growth through this channel,” ABF says.
That sentence is a strong hint about what shoppers should expect when the service arrives. Primark is unlikely to offer free delivery on small orders. A delivery charge, a minimum basket and a returns policy that may not be free are all described as now being “standard” across the market. ABF says home delivery should “reach new customers and drive incremental growth, in the same way Click & Collect has done”.
The wording covers Great Britain, meaning England, Scotland and Wales. It does not mention Northern Ireland or the Republic of Ireland, where Primark trades as Penneys. Shoppers in Belfast should not assume the service will reach them at launch, although nothing in the announcement rules out a later extension.
ABF also says it sees “a significant opportunity to develop an omnichannel operating model, starting in the UK”, and that it is “actively assessing the omnichannel opportunity in Europe”. Omnichannel is industry shorthand for a business where online orders, collection in store and shopping in person all run off the same stock and the same customer account.
Click & Collect is the template
Click & Collect is the clearest evidence of how Primark wants to sell online. Shoppers browse and reserve on the website and pick up in a store, so Primark avoids the cost of delivering a parcel to every home while still capturing online demand. ABF says Click & Collect in Great Britain “was a key contributor to like-for-like sales growth, while also driving footfall and attachment sales”.
Attachment sales are the extra items people buy when they come in to collect an order. That is the core of Primark’s logic: the website exists to get shoppers into shops, where most of the spending still happens. ABF calls its digital strategy one that will “deliver incremental growth and support our strong, store-led model”.
Digital engagement is rising quickly. ABF says investment in paid media, social media and customer relationship marketing increased engagement, “with website traffic growth of 22% in 2026”. It also highlights influencer partnerships called “Spotlight” and promotions called “Major Finds”, both of which it says drove footfall and attachment sales.
The wider market explains the urgency. Online spending is outgrowing the high street this autumn, as the BDO tracker showed when UK online sales jumped 10.1% in October while high street sales rose 2.2%. A value retailer without a delivery option is absent from the fastest-growing part of the clothing market, and that gap becomes more visible every peak season.
What will change in Primark stores?
The results contain several changes that British shoppers will notice in stores. The most visible is self-checkout, which ABF says is now in “over 330 stores” across its estate, following a refurbishment programme that refitted 33 stores covering 1.4m sq ft of selling space during the year.
Primark opened 33 owned stores in the financial year, of which three were in the UK. It relocated one store, extended two, closed two and reduced the size of three. At 12 September it traded from 508 stores in 19 markets, including four franchise stores, with 20.6m sq ft of selling space. Primark has roughly 200 shops in the UK.
ABF says womenswear “delivered strong like-for-like sales growth in 2026 and outperformed other categories in all markets”. It points to investment in performance wear and new collections, including “By Coleen” and “The Primark Scene”, as well as “an improved, more co-ordinated fashion offer”.
The next category in line is children’s clothing. The company describes “a clear strategic plan and overhaul of our kidswear category aimed at creating a simpler, stronger offer”. For parents, that suggests a narrower range with fewer, more consistent lines, although ABF has not published the detail.
Ahead of the results, Retail Systems reported on 2 November that Primark is raising pay for more than 27,000 UK retail workers. ABF’s announcement does not set out the size of the rise. Higher wage costs, together with the employment cost changes in the 28 October Budget, are part of the cost inflation that ABF says its efficiency savings had to offset.
What is the outlook for Primark in 2027?
ABF expects Primark’s adjusted operating margin to be “approximately 10% in 2027, reflecting continued investment in like-for-like sales growth”. That is a signal that the company does not intend to rebuild profit by raising prices. It would rather keep prices low and aim for more shoppers buying more items.
New space in Europe, the US and franchise markets is expected to add about 4% to sales growth in 2027. ABF continues to target “white space growth”, meaning stores in places where Primark does not yet trade, to contribute around 4% to 5% a year. The 2027 financial year will contain 53 weeks rather than 52, which will flatter the comparison slightly.
The margin guidance excludes “dis-synergy costs”, the extra overheads Primark will take on as it builds its own head office functions ahead of the demerger. Those costs have not been quantified.
Group profit to fall again, led by sugar
For ABF as a whole, the outlook is weaker. “In 2027, the Group is expected to deliver adjusted operating profit and adjusted EPS below 2026, mainly due to Sugar, as previously guided,” the company said. Reuters noted that the group “remained cautious on consumer sentiment and also the impact of inflation and higher energy costs”.
The sugar business made an adjusted operating loss of £47m in 2026 and is expected to lose £70m–£170m in 2027. ABF says gas costs, weather in Africa and the Malawian kwacha could all push the figure either way. Grocery and Ingredients profits are expected to be broadly flat, and Agriculture should grow. For UK shoppers, the most familiar part of the food side is the grocery division, whose brands include Twinings, Ovaltine, Ryvita and Jordans, and the Hovis bakery business ABF is now integrating.
What does the Primark demerger mean for shoppers?
ABF decided in April 2026 to separate Primark from its food businesses, and says the demerger “is expected to be completed in December 2027”. After that, Primark will be a standalone listed company, and the food businesses will continue as AB Foods. Separate capital markets days for Primark and AB Foods are planned before the split, with investor events running between April and July 2027.
Primark has been rebuilding its leadership for that future. Eoin Tonge was confirmed as Primark chief executive in March after serving as interim chief executive. In September, Filip Ekvall joined in the new role of chief commercial officer and Lucy Slinger became chief financial officer, according to the announcement.
For shoppers, a demerger changes little on the shop floor in the short term. Over time, though, a standalone Primark will be judged by investors purely on its retail performance, without profits from sugar, yeast and tea to cushion a weak year. That pressure is one reason home delivery, Click & Collect and digital marketing feature so heavily in this year’s results.
Primark is also growing through franchise partners. It opened its first franchise stores in Kuwait and Dubai in 2026, and since the year end has opened in Bahrain and Qatar. ABF says it has expanded its partnership with Alshaya Group to Saudi Arabia, with a first store expected in spring 2027, and signed an agreement with El Puerto de Liverpool to open in Mexico.
None of that touches British stores directly, but it explains where the capital is going. Franchise stores are “asset-light”, meaning the partner pays for the shop, so Primark can expand abroad without diverting as much money from its UK estate, its depots or its planned delivery service.
How do Primark’s results fit this week’s run of UK retail updates?
Primark is the first of several big British clothing and general retailers to report this week, and the results will be read alongside those that follow. Marks & Spencer publishes its half-year results on Wednesday 4 November, and Next and ASOS both report on Thursday 5 November. Each tells a different part of the story of how UK shoppers are spending on clothes.
| Retailer | Update | Date | What it tells UK shoppers |
|---|---|---|---|
| Primark (ABF) | Annual results, 52 weeks to 12 September | Tuesday 3 November | Price cuts continue, margin held at about 10%, home delivery in Great Britain still undated |
| Marks & Spencer | Half-year results | Wednesday 4 November | Recovery in clothing and online sales after the cyber attack |
| Next | Third quarter trading statement | Thursday 5 November | How full-price UK sales held up through October |
| ASOS | Full-year results | Thursday 5 November | The state of pure online fashion and the customer data hack |
Dates from company financial calendars, as reported in our previews.
The contrast with Next will be especially telling. Next sells largely at full price and has a mature online business, while Primark sells at the lowest prices on the high street with almost no online sales. Our preview of the Next trading update on 5 November sets out what that company has guided and what shoppers should watch.
Price as the battleground
Taken together, the week’s updates are likely to show a clothing market where price matters more than ever. Primark has chosen to protect its position by cutting prices and accepting a lower margin. Competitors from Shein and Temu to supermarket clothing ranges are fighting for the same budget-conscious shoppers, and the Christmas trading period now under way will test whether the July price cuts brought people back in enough numbers.
What should Primark shoppers do now?
For most shoppers, the results change nothing today. Primark stores, prices and Click & Collect work as before. But the announcement contains several practical pointers for anyone planning Christmas shopping or waiting for home delivery.
- Do not expect home delivery before Christmas. ABF gives no date, and the Sheffield depot was only acquired in September. Click & Collect remains the only way to order Primark online in Great Britain.
- Use Click & Collect for specific items. ABF credits the service with driving UK growth, and it lets you check availability before travelling to a store.
- Look for the “Iconic Value” lines. The July price cuts covered hundreds of key items across all categories, with nightwear, leisure and performance wear named as strong sellers.
- Expect delivery charges when the service arrives. ABF’s own description of the market points to delivery fees, minimum basket sizes and return policies.
- Check the total price online. When Primark does launch delivery, consumer law means mandatory charges must be shown clearly.
On that last point, the Competition and Markets Authority has just reminded online retailers of their obligations. Its open letter, covered in our report on how the CMA warns online shops that the first price shown must include delivery fees, says mandatory delivery charges must be included in the total price at every stage. Any Primark delivery service launched in Great Britain will have to follow the same rules.
For investors and the retail industry, the results show a business deliberately accepting lower profit to defend its customers. For shoppers, the message is that Primark intends to stay the cheapest place on the high street, and that it is building the warehouse and the website to reach them at home, on a timetable it has not yet disclosed.
Frequently asked questions
How much profit did Primark make in 2026?
Primark made adjusted operating profit of £1,005m in the 52 weeks to 12 September 2026, down 12%, according to ABF’s annual results published on 3 November 2026. Its adjusted operating margin was 10.2%.
Why did Primark’s profit fall?
ABF says the decline reflects lower like-for-like sales, related markdowns and a significant increase in investment across price, product, marketing and digital initiatives, as well as technology. Cost savings offset inflation.
Did Primark’s UK sales go up?
Yes. Primark’s UK sales rose 2% and UK like-for-like sales grew 0.5%. Its share of the UK clothing, footwear and accessories market, including online, was 6.9%, according to Kantar data cited by ABF. Growth slowed from 3% in the first half to 1% in the second half.
When will Primark start home delivery in the UK?
Primark has not given a date. ABF says it will offer home delivery in Great Britain “in the future”, supported by a highly automated depot in Sheffield bought in September 2026. The announcement does not cover Northern Ireland.
Will Primark home delivery be free?
Primark has not published delivery fees or a minimum order. ABF’s results note that return policies, minimum basket sizes and delivery fees are now standard in the market, which suggests the service is unlikely to be free on small orders.
Can I order from Primark online now?
In Great Britain you can reserve items online through Click & Collect and pick them up in a store. ABF says the service was a key contributor to UK like-for-like sales growth in 2026.
Is Primark cutting prices?
Yes. In July 2026 Primark introduced lower prices across hundreds of key lines in all markets under its “Iconic Value” campaign. ABF expects Primark’s margin to stay at about 10% in 2027 as it continues to invest in prices and marketing.
When will Primark split from ABF?
ABF says the demerger of Primark from its food businesses is on track to be completed in December 2027. Primark will then be a separately listed company, and the food business will continue as AB Foods.