By Sarah Sloat and Joshua Kirby
Associated British Foods appointed a permanent chief executive for its fast-fashion chain Primark, part of a leadership shuffle as the group looks to turn around its current weak performance.
Eoin Tonge will take the reins of Primark on a permanent basis at a time when the retailer faces sluggish sales. Total revenue for the division fell 2.7% in its most recent fiscal quarter, adjusted for currency effects. A nearly 6% like-for-like slip in the key Europe market weighed on sales as consumers tightened their purse strings.
Tonge joined ABF in 2023 from rival retailer Marks & Spencer, where he was chief financial officer. He has served as interim CEO of Primark since last year.
"[Tonge] has demonstrated the leadership, judgement and consumer insight needed to enable Primark to capture the significant opportunities ahead," group CEO George Weston said Thursday. "The changes he is implementing are at an early stage but are already having a tangible benefit in a challenging environment."
The new CEO will be joined by a chief commercial officer, Filip Ekvall, from September, in a newly created role.
Shares in ABF at the start of the year tumbled after the group warned it expects earnings to decline over the fiscal year. In November, AB Foods said it was considering a split of Primark and its food units in a bid to narrow its focus.
The gloomy consumer backdrop is hitting Primark particularly hard, analysts at JPMorgan wrote in a note to clients Thursday.
"We are mindful that Primark is currently seeking to increase value perception with consumers, which could make price increases more difficult to pass through, relative to peers, should the situation continue," JPM said.
ABF meanwhile said Thursday that its interim finance director Joana Edwards has been appointed as CFO.
"Her experience will be invaluable as we continue to drive long-term, sustainable growth," Weston said.
Write to Sarah Sloat at sarah.sloat@wsj.com and to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
March 05, 2026 03:10 ET (08:10 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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