LONDON, Nov 7 (Reuters Breakingviews) - Primark’s improved fast-fashion appeal can power a valuation revival.
Assuming sales at the retailer were to grow 7% annually, just half of the 15% jump of last year, they would hit 9.6 billion pounds.
If margins were to rise to 10%, that would add 235 million pounds to the conglomerate’s operating profit, which stood at 1.5 billion pounds last year, Breakingviews calculations show.
If Primark’s input costs keep falling and it successfully expands in the U.S., it can narrow this gap.
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Persons:
Aimee Donnellan, Aston Martin, Lisa Jucca, Oliver Taslic
Organizations:
Reuters, British Foods, Foods, X, Starbucks, Paramount, Macquarie, Thomson
Locations:
U.S