Fashion chains Primark and SuperGroup toasted an improving High Street as they both revealed significant sales hikes.
Associated British Foods (ABF)-owned Primark hailed a “marked improvement” in trading as the warmer weather helped to drive year-to-date sales up by 22% compared with the same period last year.
In an update to the markets on Thursday, the company said performance at the high street favourite had been subdued in March and April as cold weather kept shoppers away, but trading had improved significantly in May and June as the sun began to shine.
ABF also took the opportunity to express its deep sadness at the building collapse at Rana Plaza in Bangladesh in April, which led to the deaths of scores of factory workers.
One of Primark’s suppliers operated on the second floor of the building, and ABF said it had donated food and provided short-term financial compensation to more than 3,300 affected workers, irrespective of who their employer was.
ABF also said it was committed to providing long-term compensation for victims of the disaster who worked for its supplier company.
Turning to its wider business, ABF which owns a number of household food brands including Ryvita, Jordans cereals and the Twinings tea brand reported higher sales in its agriculture and ingredients divisions but a drop in sugar sales.
The firm said year-to-date profits were higher and net debts, at £1.1 billion, were £250 million lower than at the half-year point.
The company said it expected debts to fall further in the months ahead, and it remained on track to make progress on adjusted earnings per share in line with expectations over the full year.
SuperGroup which produces the SuperDry, Cult and SurfCo clothing ranges said it had enjoyed a “return to form” as it revealed plans to spend £30m on further expansion in the UK and overseas.
The retailer posted a 22% hike in underlying pre-tax profits to £52.2m for the year to April 28.
The performance was markedly better than the previous year when profits slumped by 14.7% after the company was hit by an accountancy blunder and stock shortages.
The group retrenched to focus on getting the business back on track and chief executive Julian Dunkerton said SuperGroup now had “significant opportunities for growth” after a better year.