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.

Primark, the international fashion retailer, has cut its sales forecast for this year after a weak performance in its core UK market. Associated British Foods, the parent of Primark, said in a trading update on Thursday it was now targeting “low” single-digit sales growth for the fashion chain in 2025.