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 ”until the respective governments permit them to reopen”. The shops account for 20% of Primark’s 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, ”mainly due to higher margins for Primark and grocery”, it also said that “given the effect of Covid-19 on Primark’s sales, it is too early to provide earnings guidance for the remainder of the current financial year” .
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