I love these two UK shares, but one thing’s stopping me from buying them today
The following two UK shares have scope for growth and would make tempting additions to my portfolio. However, I’ve one worry. Both sell cheap fashion but their share prices are expensive.
The Associated British Foods (LSE: ABF) share price is holding firm today even though the group’s star attraction, budget clothing chain Primark, has just warned of a £1bn drop in revenues. The lockdown is biting, with revenues at the FTSE 100 group down 13% over the 16 weeks to 2 January, a loss of £540m. Primark’s revenues fell a thumping 40%, although trading was strong when stores were open.
If stores remain shuttered until 27 February, management says the loss of sales will total £1.05bn, up from the £650m predicted on 31 December. All they can do hope the vaccines work. That’s the story with so many UK shares right now. Either way, around £200m of unsold autumn/winter stock is piling up in warehouses.
Primark doesn’t run an e-commerce operation alongside its high street stores, which wasn’t a problem until the pandemic. Investors expected bad news and have taken …
More on: uk.finance.yahoo.com