The conglomerate lowered its sales-growth expectations for Primark —its clothing retailer that accounts for the lion’s share of earnings—amid a challenging retail environment.

ABF said Primark had delivered “good growth” in continental Europe and the US, but that the fashion chain’s sales in the UK and Ireland — which account for almost half of the total — fell by 4 per cent in the 16 weeks to January 4. Like-for-like sales were down 6 per cent in the period.

Associated British Foods cut annual sales guidance for its Primark budget fashion retailer after reporting weak trading in its main UK market in the Christmas quarter that it said reflected pressure on lower-income shoppers.

Primark owner Associated British Foods has revealed a slump in sales in the UK in recent months amid continued pressure on household budgets