Coronavirus: Primark warns of sales hit as overseas stores shut
Value fashion giant Primark expects to take a hit on earnings after having to close overseas stores amid the coronavirus crisis and seeing a fall in like-for-likes in the UK.
Primark parent ABF said that it has shut branches in France, Italy, Spain and Austria âuntil the respective governments permit them to reopenâ. The shops account for 20% of Primarkâs selling space and 30% of sales.
ABF warned that the revenue hit would take a toll. While it reassured that first-half adjusted operating profit will be ahead of expectations, âmainly due to higher margins for Primark and groceryâ, it also said that âgiven the effect of Covid-19 on Primarkâs sales, it is too early to provide earnings guidance for the remainder of the current financial yearâ .
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