Associated British Foods (ABF) has confirmed that its full-year profit is expected to fall short of the previous year's performance, citing stagnant third-quarter revenue.
The UK-based conglomerate, which operates the Primark retail chain (known as Penneys in Ireland), reported that sales growth has stalled, prompting a downward revision to its annual financial outlook.
Similarly, Swedish retailer H&M reported operating profits that missed market expectations, highlighting margin compression across the industry.
The update underscores persistent headwinds in the global apparel sector, where consumer demand remains fragile.
ABF's caution aligns with a broader trend of weakening performance among major fashion retailers.
Earlier this year, Lululemon sharply reduced its full-year forecast after reporting disappointing second-quarter guidance, signaling that pressure on discretionary spending has not eased.
Similarly, Swedish retailer H&M reported operating profits that missed market expectations, highlighting margin compression across the industry.