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 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.

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.

Canada's retail sales were flat in November as consumers purchased less from supermarkets, grocery stores, alcohol outlets and furniture shops but the numbers were buoyed by car sales, data showed on Thursday.