Primark quantifies coronavirus impact: 190 million pounds in four weeks

Primark measures the impact of the coronavirus. The Irish low cost fashion giant has temporarily closed all its stores in France, Spain, and Austria, which represent 20% of its commercial network and generate around 30% of sales.  

The group planned that the set of stores  in these three countries would generate an income of 190 million pounds (210 million euros) over the next four weeks.  

The rest of Primark’s commercial network, including stores  in the United Kingdom, represents 41% of the company’s total sales. The company has also indicated that in these stores there has been a decrease in income in recent weeks, which will are prone to accelerate in the coming days.  

Primark has pointed out that it is too early to provide a full-year forecast   

“We are managing the business appropriately but do not expect to significantly mitigate the effect of the contribution lost from these sales,” Primark said in a statement. The group added that given the effect of the Covid-19 on the company’s sales it is still too early to provide earnings guidance for the remainder of the fiscal year.    

As for its supplies, the group had already alerted back in February in regard to the situation in China. Still, Primark has noted that “the situation in China has improved, with most factories supplying Primark having re-opened. As a result, supply shortages from that country are now expected to be minimal”