Primark warns over rising cotton prices

first_img whatsapp Primark warns over rising cotton prices Tuesday 9 November 2010 4:48 am Share Primark owner Associated British Foods warned the sharp hike in cotton prices will hit margins at its discount fashion chain as it beat forecasts with a 25 per cent rise in full-year earnings.Chief executive George Weston said that Primark will not surrender its price leadership status in clothing and will take a hit to its profit margin to soften the blow for its customers from the recent doubling in cotton prices.“We will remain the price leader, there is no doubt that we will not surrender this position. We don’t expect the cotton price to affect sales growth but it will affect the margin in the short term,” Weston told a annual results briefing.Primark’s 204 stores showed a rise in operating margins to 12.5 per cent in the year to mid-September from 10.9 per cent previously, and Weston expects the margin in the current year to drift back down between these two figures.The London-based group which markets Silver Spoon sugar, Twinings tea and Ovaltine drinks also warned about rising wheat prices, the uncertainty about the global economic outlook and the impact of Value Added Tax rises in Europe.This prompted a cautious outlook, as the group only said it expects to see revenue and profit growth in the current year but gave no indication of the size of any increase.The group, 55 per cent owned by the family of Chief Executive Weston, posted adjusted earnings of 72.2 pence a share for the year to 18 September. whatsapp Show Comments ▼center_img John Dunne More From Our Partners Brave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgColin Kaepernick to publish book on abolishing the policethegrio.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgKansas coach fired for using N-word toward Black playerthegrio.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFans call out hypocrisy as Tebow returns to NFL while Kaepernick is still outthegrio.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgLA news reporter doesn’t seem to recognize actor Mark Currythegrio.comRussell Wilson, AOC among many voicing support for Naomi by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was Famous, Now She Works In {State}MoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen Heraldmoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCute Tags: NULLlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *