Associated British Foods downgraded the annual sales guidance for its Primark budget clothing business on Thursday after disappointing results in the Christmas quarter in its main UK and Ireland market.

Sales at Primark grew 2% year on year for the 16 weeks to 4 January 2025, but the retailer has lowered its sales outlook for the year, as it battled "weak" trading activity in its home markets of the UK and Ireland.

Primark has cut its sales forecasts after the high street chain’s UK shops were knocked by “cautious” shoppers and unfavourable weather. Parent firm Associated British Foods (ABF) revealed a slump in sales in the UK in recent months amid continued pressure on household budgets.

Investing.com -- Associated British Foods (LON: ABF) (ABF), the parent company of retail giant Primark, has lowered its sales growth outlook for 2025, citing persistent challenges in the UK retail market, on Thursday.

Primark, the international fashion retailer, has cut its sales forecast for this year after a weak performance in its core UK market. Associated British Foods, the parent of Primark, said in a trading update on Thursday it was now targeting “low” single-digit sales growth for the fashion chain in 2025.