The New Crown Pneumonia Outbreak Will Cause Primark To Lose 190 Million Pounds In The Coming Month.

Ying Lian food said Monday that its fast fashion and cheap brand Primark finally succumbed to the damage caused by the new crown pneumonia epidemic. With the closure of stores, Primark will lose 190 million pounds in the coming month. Affected by this, British Union food prices fell 11% to 1635.50 pence on the London Stock Exchange on Monday, after a 100% fall.

Because France, Spain, Austria and Italy have imposed blockades, Primark stores in these countries have been forced to temporarily shut down.

"These closed stores now account for Primark 30% sales," Ying Lian said in a statement. From the date of the announcement, we expect that the sales of these stores will reach 190 million in the next four weeks. " Primark sales in the UK account for 41% of its total sales. Primark sales in the UK have fallen over the past two weeks.

In a statement released at the end of February this year, Ying Lian said that Primark had not been affected by the new crown pneumonia epidemic in short term. The company had said at the time that it had set up inventory before the Chinese New Year in Wuhan at the beginning of the outbreak of the new crown pneumonia. But the company did warn at the time that if factory production continued to delay, the supply shortage would probably exist at the end of the fiscal year.

"Since then, China's situation has improved, and most of the Primark supplier factories have been put into operation," Ying Lian said on Monday. Therefore, the supply shortage from China is now expected to decrease to a minimum. However, with the outbreak of the epidemic in Italy, France, Spain and Austria, stores that occupy Primark 20% sales have been closed until the government allows them to reopen.

"We are managing the business appropriately, but we do not expect to significantly reduce the impact of these sales losses. Given the impact of the new crown pneumonia epidemic on Primark sales, it is too early to provide profit guidance for the rest of the current fiscal year, "Ying Lian said. Ying Lian also said that its sugar, food, ingredients and agricultural businesses have not been "materially affected" in other countries. Ying Lian food is expected to announce its interim results in April 21st.