Thriving Primark will beat the High Street blues with denim

Fashion chain Primark is banking on denim jackets and white jeans to lure more shoppers into its stores as it bucked the gloom engulfing the High Street.

Same-store sales were up 3% in the UK in the 24 weeks to March 3, while overall revenues grew 8% to £3.5 billion.

However, it posted a 1.5% decline in overall sales affected by warm weather in October, quickly followed by a cold snap in November on the Continent.

Despite this, chief executive George Weston said it expects profits to accelerate during the rest of the year, lifted by the weaker dollar.

“Our stores are looking sharp and we’re encouraged by growth in America,” he added.

Pre-tax profits edged down slightly at Associated British Foods, Primark’s owner. They were dragged down by its sugar business to £603 million.

The company, which also sells Twinings tea, maintained its outlook for the full year.