High street favourite Primark has seen sales soar again as the warm weather tempted sunseekers into its stores.
Total revenues climbed by 22% in the third quarter to June 21, with overall sales in the 40 weeks of the year to date ahead by 17%.
Parent firm Associated British Foods which also owns a string of consumer food brands including Kingsmill and Twinings said good weather and new store openings had helped the business to push ahead of 2013 when the weather was less kind.
Shares opened higher yesterday as the company said strong levels of profitability in retail, grocery and ingredients meant it is on course to grow earnings per share in the current financial year.
However, the stock eventually closed down 42p or 1.4% at 2,958p as investors digested a slowdown in the group’s sugar business and the potential £50 million full-year currency exchange impact due to the strengthening pound.
Rival fashion retailer SuperGroup also published results yesterday, revealing full-year profits it hoped would be enough to reassure shaken investors.
The company warned in May that profits for the year would be at the lower end of expectations because of heavy discounting by rivals, a late Easter and a lack of spring stock in the fourth quarter of the year.
The retailer which has 500 stores worldwide, including outlets in Dundee’s Overgate and in St Andrews yesterday posted underlying pre-tax profits of £62m for the year to April 26.
Despite being below the City consensus of £62.9m, the outcome represented an 18.8% uplift on 12 months earlier.
CEO Julian Dunkerton yesterday said: “With a strong pipeline of new stores, particularly in mainland Europe, we are well positioned for further profitable growth in the year ahead.”
Shares closed the day up 1.8%.
Meanwhile, Burberry boss Christopher Bailey hailed a 12% sales increase for the luxury brand yesterday.
The rise was helped by double-digit growth in China, eclipsing the performance in Europe and other regions, but the group warned the strength of the pound could have a deepening impact on its bottom line.
The strong sales figures are unlikely to ease the pressure on Mr Bailey when he faces investors at the firm’s AGM today.
The former chief creative officer has been under fire over his pay package, which includes a £1.1m salary, an annual allowance of £440,000 and a pension allowance of £330,000.
He also receives an annual performance-based bonus of up to twice his salary, and is eligible to participate in a three-year executive share plan worth up to six times his salary in “exceptional circumstances”.
The annual report disclosed Mr Bailey received a one-off grant of 500,000 shares, worth £7.2m, on his appointment.
Burberry shares yesterday rose 3.2%.