AB Foods Cuts Profit Forecast on Primark Discounting, US Weakness
AB Foods warned annual profit would fall as heavy discounting at its Primark fashion business and weaker U.S. demand - especially among Hispanic shoppers - hit food ingredient sales, driving its shares as much as 12% lower.
Thursday's profit warning underscores mounting pressure on retailers and food makers as European consumers tighten spending and economic anxiety weighs on some U.S. customers.
Muted U.S. consumer demand, notably among Hispanic customers, has weighed on AB Foods' grocery business "following everything that's been happening from April onwards," acting Finance Director Joana Edwards told analysts...
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