Penneys reports first decline in sales since reopening

Customers queue to enter Penneys, Swords on their first day of re-opening after months of being closed due to the COVID-19 lockdown. Picture: Colin Keegan, Collins Dublin

Penneys has announced a slight decline in sales since it reopened post Covid-19 lockdown.

But the retailer, which operates internationally as Primark, says revenues for the last quarter have beaten expectations.

Early cumulative Primark sales are expected to be €2bn for the month of May, indicating a significant sales acceleration in July. 

Trading for the company is described as "strong" by Davy Research. They expect a "very strong increase" in aggregate adjusted operating profit, with profits expected to be "at least at the top end of £1.3bn excluding liabilities."

Business correspondent, Gavin McLaughlin, says the figures are encouraging given the current situation, "Sales are expected to be down 12 per cent in the UK. That's skewed by city-centre stores that are more reliant on commuters and tourists. If you exclude those stores the decline there is only 5 per cent. In Europe, you're looking at a 17% per cent decrease and in the US it's 12%."

"Overall, it's a decline but its not that bad of a decline," he added.