Primark owner Associated British Foods raised its estimate of lost sales due to COVID-19 lockdowns this autumn to £430 million ($579 million) but said it was hopeful of making up some of the shortfalls with 'phenomenal' pre-Christmas trading.
The group, which had previously forecast a £375 million sales hit from forced store closures, said on Friday it still expects fashion chain Primark's full-year 2020/21 sales and profit to be higher than the previous year's.
Primark, which trades as Penneys in Ireland, which does not have an online offer, made a profit of £362 million in its 2019/20 financial year which ended on 12 September.
'Phenomenal'
Trading at stores in its major markets of Ireland, England, France, and Belgium which reopened in the last week has been 'phenomenal', said AB Foods' finance chief John Bason.
"It's very clear that our trading before the lockdown and now our trading these first few days after lockdown (is) way higher than we had previously expected," he told Reuters.
"So I think it will erode that (£430 million) number when we finally come to report it," he said.
Bason noted that stores in Ireland broke their daily sales records on two days running.
"I think we'll have a strong run-up to Christmas," he added.
Shares in the group, majority-owned by the family of CEO George Weston, were up 2.6% at 0948 GMT, paring 2020 losses to 9.1%.
Across its markets, 34 stores remain temporarily closed, including all stores in Northern Ireland and Austria, representing 7% of total selling space.
US Stores
Since September Primark has opened two new stores in the United States, in New Jersey and Florida.
It now trades in 11 stores in the United States and is accelerating its opening programme.
AB Foods said all orders Primark has placed with suppliers have been honoured.
The group also has a grocery division, whose brands include Kingsmill bread, Twinings tea, the Ovaltine drink, and Jordans cereal, as well as major sugar, agriculture, and ingredients businesses.
It said trading in all these businesses has been ahead of both expectations and last year.
AB Foods said it has completed all practical preparations for the end of the Brexit transition period on 31 December and contingency plans were in place should its businesses experience disruption.
News by Reuters edited by Donna Ahern, Checkout. Click subscribe to sign up for the Checkout print edition.
