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.

Primark owner Associated British Foods has revealed a slump in sales in the UK in recent months amid continued pressure on household budgets

The fashion chain’s like-for-like sales in the UK and Ireland — which account for almost half of the total — fell more sharply, dropping 6 per cent over the 16 weeks. Primark’s share of the total UK fashion market slipped to 6.8 per cent.

Associated British Foods has downgraded the annual sales guidance for its Penneys/Primark clothing business after a disappointing Christmas quarter, which it blamed on milder weather and a more cautious consumer.

Primark has cut its sales forecasts after the high street chain’s UK shops were knocked by “cautious” shoppers and unfavourable weather. Parent firm Associated British Foods (ABF) revealed a slump in sales in the UK in recent months amid continued pressure on household budgets.