Forecasts for Associated British Foods PLC's clothing arm Primark have been cut by analysts ahead of the pre-close trading statement on 12 September.
Citigroup trimmed its estimates for the clothing chain but upped its price target.
For the fourth quarter between June and September, Citi sees a constant currency sales improvement of 11% for Primark, comprising +6% like-for-like and 5% space.
The bank adds that this is a modest downgrade on its previous forecast of 7% like-for-like, leading to a clipping of the underlying profits forecast by £5 million to £1,485 million (from £1,490 million).
The last update from ABF in June saw management increase profit guidance as hiked shop prices were revealed to have helped fuel a 7% increase in like-for-like sales.
Even so, other changes to its valuation model bump up the target price to 2,100p from 2,000p, though the rating remains 'neutral'.
Other analysts have warned that clothing retailers look set to face a squeeze heading into the new year due to falling prices.
JP Morgan predicted roughly a 6% fall in clothing prices during 2024, with those retailers with tighter margins potentially facing pressure.
Primark was one of those singled out, as the analysts said their “equity stories hinge on margin recovery”.