DAVY VIEW

Primark delivered a Q4 like-for-like (LFL) decline of 3% (Visible Alpha (VA) consensus: -2.2%), with the drag led by Continental Europe and UK/Ireland broadly flat. Management are guiding Primark margin of c.10% in FY26 and FY27, including continued reinvestment in LFL growth. Management have also announced that Primark will offer UK home delivery in the future, though a timeline and financial details have not been disclosed. On Sugar, the company now expects a FY27 adjusted operating loss of £70-170m (VA consensus: -£60m). At first look, we see c.mid-single-digit (MSD) percentage downside to our FY27 profit current forecasts.