DAVY VIEW

While we remain optimistic on the trajectory of Primark’s growth and profitability, we note that its US expansion remains a source of debate among the investment community. Our evaluation of Primark's US expansion strategy reveals both challenges and opportunities. The brand's rollout trajectory appears promising, supported by an attractive product mix. Yet, challenges stem from inefficiencies within Primark's current estate and low brand recognition. The underutilisation of its US operations suggests that the operational scale is not yet adequate to capitalise on its cost structure or to carve out a significant brand footprint.