Home / Knowledge / News / Apparel/Garments / Primark to bear the cotton price burden itself
Primark to bear the cotton price burden itself
17
Nov '10
Primark intends to retain its number one position in budget fashion business by giving up some of its profits, so as to not pass the burden of high cotton prices to its buyers.

As revealed by John Bason, Finance Director of Associated British Foods, which owns the retailer, there has been a considerable rise in Primark's profits during the January to September period this year, which has boosted the company's strength for next year. He added that, they expect to continue to be the best value provider on high street, and are ready to sacrifice some profits for the same.

Besides, Primark whose turnover grew by around 18 percent to £2.73 billion during the year, there has also been a large scale improvement in the overall performance of AB Foods' business, Bason said.

The hike in price of the commodity had a mixed effect on the holding company, as on one hand it is dealing with the rise in price of cotton at Primark, and on the other it is trying to push through the escalating prices of Kingsmill and other grocery items produced from wheat.

Primark's operating profits grew by 35 percent during the period under consideration and were recorded at £341 million, while its profit margins too expanded from 10.9 percent to 12.5 percent. The firm launched 13 new outlets this year, which includes three outlets in Spain, where Primark is trying to resist the recession with a sales growth of over 20 percent.

Fibre2fashion News Desk-India


Must ReadView All

Textiles | On 26th Jul 2017

Vietnam’s textile & garment exports cross $13bn in H1

Vietnam earned $13.... billion from textile and garment exports in...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Egypt signs agreement with UNIDO for cotton production

Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X