March 18, 2020 / 7:21 AM / 19 days ago

Zara-owner Inditex books 287 mln euro provision against coronavirus impact

MADRID, March 18 (Reuters) - Zara-owner Inditex said on Wednesday the coronavirus pandemic had dealt a significant blow to its business and that it would book a provision of 287 million euros ($316 million) against the outbreak’s impact on its spring/summer inventory position.

The cash-rich fashion group said the uncertainty generated by the coronavirus pandemic meant it may channel the cash destined for the payment of the 2019 dividend into reserves, subject to a board and shareholder vote.

Inditex, the world’s largest clothing retailer, said store and online sales in local currencies fell 24.1% from March 1 to March 16 and that nearly 4,000 stores were temporarily closed in 39 markets due to the outbreak. ($1 = 0.9086 euros) (Reporting By Sonya Dowsett, Editing by Inti Landauro)

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