// AB Foods warns of risk of supply shortages if factory delays in China caused by coronavirus are prolonged
// However, it said Primark was “well stocked with cover for several months” & does not expect any “short-term impact”
// Primark half-year sales 4.2% higher year-on-year, but down 1.3% in like-for-likes, amidst recent site expansions
Primark parent company AB Foods has warned there is a risk of supply shortages on some lines later in the year if factory delays in China caused by coronavirus are prolonged.
However, it said the value fashion retailer, which sources numerous items and products from China, is “well stocked with cover for several months” and does not expect any “short-term impact” as a result of the virus outbreak.
AB Foods said it was assessing plans to mitigate the impact of coronavirus on Primark, including the possibility of increasing production from suppliers in other regions.
- Primark to open first ever pop-up store at Boxpark Shoreditch
- Primark Christmas trading & expansion bolsters AB Foods’ sales
- Primark owner warns on slight profit hit amid growth
The warning came as AB Foods said in a pre-close trading update for the half year period ending February 29 that sales and operating profit growth were both expected to surpass expectations.
AB Foods said Primark sales in the first half of the financial year were 4.2 per cent higher than the same period last year, as it was boosted by recent site expansions.
The FTSE 100 firm said it was on track to post full-year figures in line with expectations, on the back of strong group sales and profits for the half year.
AB Foods said Primark’s UK sales are expected to have risen three per cent against last year following store expansions and openings.
Meanwhile, like-for-like sales are expected to have dropped 1.3 per cent over the half-year period.
The firm said UK sales were “particularly good” in November and December but have “weakened” in January and February.