DAVY VIEW

Primark like-for-like (LFL) growth remains challenging, declining c.3% in the period due to a meaningful pullback in European performance. Management now anticipates an adjusted operating profit margin in H1-26 of c.10%, with a similar margin expected for FY26 if current sales trends persist (Davy: 11.3%). Management also anticipates Grocery and Ingredients profit to be moderately lower year-on-year (yoy). Taken together, the group guides adjusted operating profit and adjusted EPS to be below FY25. At first look, we envisage a circa mid- to high-single-digit percentage cut to our FY26 forecasts.