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 downgraded the annual sales guidance for its Primark budget clothing business on Thursday after disappointing results in the Christmas quarter in its main UK and Ireland market.

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.

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