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 āuntil the respective governments permit them to reopenā. The shops account for 20% of Primarkās 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, āmainly due to higher margins for Primark and groceryā, it also said that āgiven the effect of Covid-19 on Primarkās sales, it is too early to provide earnings guidance for the remainder of the current financial yearā .
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