London, Jan 8, 2026, 08:42 GMT — Regular session
- Associated British Foods shares slid after the Primark owner cut its profit outlook
- Primark’s continental Europe trading stayed weak, and ABF flagged softer U.S. food demand in some categories
- Focus now shifts to management commentary and ABF’s next trading update later this month
Shares in Associated British Foods plc (ABF.L) fell sharply on Thursday after the Primark owner warned annual profit would drop, hit by weak clothing demand in continental Europe and softer sales in parts of its U.S. food business. The stock fell as much as 11.7% to 1,901 pence in early London trade and is down about 5% over the past year. 1
ABF said it now expects adjusted operating profit and adjusted earnings per share to come in below last year, reversing its earlier forecast for growth in 2026. “We expect the tough trading conditions to continue in the short term,” chief executive George Weston said. 2
ABF said Primark’s sales in the UK rose around 3% in the 16 weeks to Jan. 3, with like-for-like growth of about 1.7% — a measure that strips out new stores — while continental Europe (49% of Primark sales) posted like-for-like declines of around 5.7%. Store openings added about 4% to sales growth, including a first store in Kuwait via a franchise, but ABF said it “significantly increased markdowns” — price cuts used to clear stock — to keep inventory in check. Group revenue rose 1% in actual currency but fell 1% at constant currency, excluding foreign-exchange swings, and ABF said it will publish final segment revenue for the period on Jan. 22 and hold an investor call at 08:30. 3
On the food side, ABF said the hit from weaker U.S. consumers has been “more acute than anticipated” in cooking oils and bakery ingredients. It cut its outlook for the Grocery and Ingredients divisions, while leaving its guidance unchanged for Sugar and Agriculture. 4
If current sales trends persist, ABF sees Primark’s full-year operating margin at about 10% and expects first-half sales growth to stay in the low single digits. The company has leaned more heavily on discounting to shift stock as demand cooled. 5
The warning lands as investors work through a cluster of UK retail updates after Christmas and weigh how long consumers keep trading down. Tesco on Thursday lifted its annual profit guidance after UK sales rose 3.2% in the six weeks to Jan. 3, a reminder that value-led food retailers have held up better than discretionary spending. 6
ABF has another live question hanging over the stock: the group has been reviewing its structure and has said a separation of Primark from its food businesses is on the table, though no decision has been taken. 7
