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 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.

ABF said Primark had delivered “good growth” in continental Europe and the US, but that the fashion chain’s sales in the UK and Ireland — which account for almost half of the total — fell by 4 per cent in the 16 weeks to January 4. Like-for-like sales were down 6 per cent in the period.

Primark's owner has slashed forecasts for the retailer's sales this year after a disappointing performance over the crucial Christmas trading period.