Primark owner set to unveil £1.1bn slump in sales during lockdown

Primark owner Associated British Foods (ABF) is set to unveil a slump in sales and profits after the high street giant was hammered by the latest coronavirus lockdown.

The company is expected to reveal it missed out on £1.1 billion in sales over the six months to February as a result of further enforced closures, in an update to investors.

However, many analysts are optimistic the consumer giant will recover ahead of the market.

On Tuesday, shareholders will be keen to hear how Primark stores traded in their first week since customers in England were allowed back. Unlike many competitors, Primark has not been able to trade at all in the UK since stores shut as it continues to stand firm on its bricks and mortar strategy and avoided launching online.

ABF is expected to reveal sales of around £2.2bn for the Primark business in the six months to February 27.

However, this will represent a slump against its £3.7 billion figure it posted for the same period a year earlier.

Analysts at Shore Capital have said they are positive the Primark format is “set to bounce back strongly”. The equity experts were also positive about the “positive momentum” seen across ABF’s food and ingredients businesses.

“ABF has shown remarkable agility and resilience and its excellent cash generative traits and strong balance sheet leave the group very well placed for the future,” said Shore’s Clive Black and Darren Shirley.

Primark stores in England reopened on Monday.