The conglomerate behind Primark has warned that the weaker pound is set to put profit margins at the fashion chain under pressure in its next financial year.
Associated British Foods, which generates half its sales and profit from the retailer, said that the strengthening of the US dollar and decline of sterling would increase the cost of goods.
The alert, issued in a pre-close trading update for its financial year ending September 14, pushed shares in ABF down 49p, or 2.1 per cent, to £23.05.
The conglomerate behind Primark has warned that the weaker pound is set to put profit margins at the fashion chain under pressure in its next financial year.
Associated British Foods, which generates half its sales and profit from the retailer, said that the strengthening of the US dollar and decline of sterling would increase the cost of goods.
The alert, issued in a pre-close trading update for its financial year ending September 14, pushed shares in ABF down 49p, or 2.1 per cent, to £23.05.
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