Associated British Foods cut annual sales guidance for its Primark budget fashion retailer after reporting weak trading in its main UK market in the Christmas quarter that it said reflected pressure on lower-income shoppers.

The conglomerate lowered its sales-growth expectations for Primark —its clothing retailer that accounts for the lion’s share of earnings—amid a challenging retail environment.

Associated British Foods expects analysts' consensus profit expectations for its 2024/25 year to fall about 2% after the group cut the sales outlook for its Primark clothing business, its finance chief said on Thursday.