Primark's newest market grew sales by double digits last year while its largest overseas region went backwards, a split that offers a revealing look inside the retailer at the heart of Associated British Foods (LSE:ABF).

On one side of the Atlantic, Primark's sales climbed 13%. On the other, like-for-like sales across Continental Europe fell 4.7%. That divergence was one of the more striking details in the full-year results that Associated British Foods (LSE:ABF) released on Tuesday 3 November 2026, covering the 52 weeks to 12 September.

The results did not land well overall. ABF closed 2.2% lower and was among the FTSE 100's notable fallers after forecasting lower annual profit, on a day when the index as a whole fell 1.14% to 10,638.43. Yet the regional detail behind Primark's numbers tells a more nuanced story than the share price move alone suggests.

Two very different growth engines

It is worth being precise about what each figure measures, because they are not quite the same thing.

The US number is a measure of total sales growth. It captures everything, including Revenue from stores that opened during the year. For a retailer still building its presence in a market, total sales can rise quickly simply because there are more shops trading than there were twelve months earlier.

The Continental Europe number is a like-for-like measure. Like-for-like, sometimes called same-store, sales compare stores that were open in both periods, stripping out the effect of new openings and closures. It is generally regarded as a better guide to underlying Demand at an established estate, because it shows whether existing shops are attracting more or fewer shoppers and spending.

So the comparison is partly between a young market in expansion mode and a mature one where existing stores are being tested. Both readings are informative, but they answer slightly different questions. The US figure says Primark's American roll-out is adding revenue at pace; the European figure says demand at its established stores on the Continent weakened.

Between those two extremes sat Primark's home market. Like-for-like sales in the UK & Ireland rose 0.5%, a turnaround from a 3.1% decline in the prior year. Primark also nudged up its share of the UK clothing market to 6.8% from 6.6%.

Put together, the regions produced a modest overall picture:

Total Primark sales:up 2% to £9.8bn.

Primark like-for-like sales:down 2.6%.

UK & Ireland like-for-like:up 0.5%.

Continental Europe like-for-like:down 4.7%.

US sales:up 13%.

The gap between total sales growth of 2% and a like-for-like decline of 2.6% is a reminder of how much of Primark's top-line expansion is coming from new space. Management expects that to continue, guiding that new space should add about 4% to sales growth in the 2027 financial year.

Why the mix matters for profitability

Regional performance feeds directly into margins. Primark's adjusted operating Margin fell to 10.2% from 11.9%, and the Retail segment's profit dropped 12% to £1,005m. When like-for-like sales fall in a large region, fixed costs such as rent and staffing are spread across lower takings in those stores, which tends to squeeze profitability.

The US, by contrast, is smaller, and a fast-growing estate can carry its own costs. New stores often take time to reach mature levels of profitability, and opening expenses arrive before revenue builds. sales growth in a market does not automatically mean that market is already contributing much to group profit; the source material does not break out US profitability, so it is not possible to say how much the American stores earned.

What can be said is that the company's outlook for 2027 assumes Primark's margin holds at around 10%. That implies management is not counting on a sharp recovery in Continental Europe to lift profitability in the near term, nor on a rapid shift in the regional mix.

ABF chairman George Weston described the year as one of "good strategic and operational progress across the group." For FTSE 100 watchers, the regional figures help explain where that progress was most visible and where it was harder to find.

The bigger structural picture

The geographic split takes on added significance as ABF prepares to separate Primark from its food businesses. The demerger remains on track for December 2027, and once complete, Primark will be valued on its own merits rather than as part of a diversified group.

At that point, the balance between a mature European estate and a growing US presence is likely to be central to how the market thinks about the business. A standalone retailer's prospects depend heavily on where future growth will come from and how profitable that growth can become. Primark is also planning UK home delivery by the end of calendar 2027, adding another dimension to its strategy in its most established market.

ABF has lined up investor events across 2027, culminating in Capital Markets Days for both AB Foods and Primark in the autumn. These sessions may provide more detail on regional plans than a results statement typically allows.

For now, group numbers frame the context. ABF's revenue was £19.6bn, down 1% at constant currency; adjusted operating profit fell 14% to £1,508m; and the company expects group profit and Earnings Per Share to decline again in 2027, mainly because of losses in its Sugar division.

Key dates to watch

Thu 5 Nov:Bank of England MPC decision, with a 25bp rise to 4% widely expected; Next publishes Q3 trading the same day.

Fri 6 Nov:US October jobs report, a gauge of the American economy where Primark is expanding.

Thu 12 Nov:ONS first quarterly GDP estimate for July–September 2026 (7:00am).

April–July 2027:ABF investor events, ahead of autumn Capital Markets Days for AB Foods and Primark.

December 2027:Planned Primark demerger from ABF's food business.

The bottom line

Primark's 13% US sales growth and its 4.7% like-for-like decline in Continental Europe are not directly comparable measures, but together they sketch a Business in two different phases: expanding quickly in a newer market while facing softer demand in an established one. The UK sat in between, returning to modest like-for-like growth and gaining market share.

That mix helps explain why Primark's total sales rose while its margin narrowed. As the 2027 demerger draws closer, the question of how these regions develop, and how much profit the growing US estate can eventually generate, is likely to remain one of the more closely followed threads in the ABF story.