Primark expects 70 % profit decrease

Primark expects 70 % profit decrease
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Primark has lost almost 900 million euros to the coronavirus crisis: the Irish fashion discounter now expects its full-year profit will drop by almost 70 %.

 

No online compensation

The Irish chain, which is part of British food giant ABF and therefore reports its results in British pounds, saw its sales drop by 75 % between 1 March and 20 June, reaching just 582 million pounds (650 million euros) according to The Guardian. As the chain has no online shop, it is fully dependent on sales in its physical stores.

 

Recovery is now on its way, with just 8 of the 375 stores still closed. Still, the chain points out that stores in city centres suffer from a lower footfall from both tourists and commuters. A surge in demand for typical summer clothes, such as T-shirts and shorts, is beginning to make up for the drop in especially travel-related accessories.

 

Primark now says it expects its operational profit to drop from 913 million pounds to an amount between 300 to 350 million pounds (330 to 390 million euros), as lower sales go hand in hand with rising costs for social distancing measures and the like.