Primark, an Irish fashion retailer, experiences sales bounce more quickly than expected after the revival of stores from lockdown as the retailer was hard hit by the coronavirus pandemic because of its lack of an online business.
The shares rose as much as 8.4% in early London trading. So far this year they’re down 19%.
The U.K.-based chain’s comparable sales are down 12% since its stores started to reopen in other markets on May 4, owner Associated British Foods Plc said Thursday. Shoppers lined up outside Primark outlets in Britain when they reopened last month, mitigating the loss of business.
Primark reopened stores faster than expected, with 367 now back in business and only eight still shut, AB Foods finance director John Bason said on a call. “I think that outcome is going to pleasantly surprise some people,” he said. “We are still opening new stores, too. We opened five this quarter and will open another five during the rest of the year, including two in the U.S.”
Because Primark does not sell via e-commerce, it was hit harder hit than rivals by the lockdown, with revenue falling 75% in the fiscal third quarter. The chain suffered a cash outflow of 800 million pounds.
