Primark Owners Warn The Current Situation Threatens The Supply Of Clothes.

Mark, the owner of Primark, is trading here in the name of Penneys. He warned that if the production delays were delayed due to the current situation, there might be some risk of shortage of garment production lines later this year.
Primary Associated Foods, which purchases more than 40% of Primark products from China, said it would normally set up inventory before the lunar new year.
This means that it can be well stocked in a few months and will not produce any short-term effects.
The group maintained its overall financial guidance for the entire 2019-20 years today.
It said it is working closely with Chinese suppliers to assess the impact of the virus on their factories and supply chains and the ability to fulfill current orders.
It said: "if the delay in factory production is extended, the risk of supply shortages will increase in some production lines later this fiscal year."
It added: "we are evaluating mitigation strategies, including improving the output of existing suppliers in other regions."
Shares of AB Foods fell 2% today, and increased to 9.5% in the past year. Most of the shares of the company are owned by the CEO George Weston family.
John Bason, chief financial officer, said that Primark is working with suppliers in Bangladesh, Kampuchea, Vietnam, Turkey and Eastern Europe to fill potential gaps. (Bason)
He said to Reuters: "in parts or other fields, China is very good at it, and it is difficult to purchase from other places. Therefore, I do not guarantee that we can make up for all the shortages from China. "
AB Foods also has the main sugar, groceries, raw materials and agricultural sector. Some of its food businesses have business in China.
It said that the Chinese sugar processing campaign was completed before the outbreak of coronavirus broke out in January.
However, due to the labor and logistics constraints caused by the virus outbreak, the capacity of its AB Mauri, AB Agri and Ovaltine factories is decreasing.
Bason said that the impact is not important for the whole team.
AB Foods forecasts that its sales and operating profits will exceed last year as of the first half of February 29th.
It is estimated that sales in the first half of Primark will increase by 4.2%, and the sales level will be the same as that of last year. UK sales are expected to grow by 3%, and eurozone sales are expected to grow by 5.3%.
The group's outlook for the whole year has not changed, and progress is expected to be made in the adjusted earnings per share (EPS) after the adjustment of the report and the lease.
According to Refinitiv data, analysts today expect an average annual earnings per share of 147.2 pence, up from 137.5 pence in the 2018-19 fiscal year.