H&M Group sales down 57% during March 1 - May 6

07 May '20

2 min read

Pic: H&M Group

H&M Group has announced that its total sales during the period March 1- May 6, 2020 has decreased 57 per cent compared to same period in 2019. The group reported that based on decisions by authorities, around 80 per cent stores have been closed since mid-March. However, from the end of April the group has gradually reopened stores in a number of markets.

Group reported that the reopenings in each market are in line with local restrictions and rules on social distancing. In those markets that have begun to open up, trade in the stores has initially been muted. At present 3,050 stores, representing 60 per cent of the group’s 5,061 stores, are still temporarily closed. Online sales, which are open in 46 of the company’s 51 online markets, increased 32 per cent in the same period.

Sales during the period fell in all the countries around the world. Sales in Italy fell 80 per cent followed by Spain (76 per cent), US (71 per cent), France (71 per cent), UK (60 per cent), Poland (59 per cent), Japan (58 per cent), Denmark (51 per cent), Russia (47 per cent), Germany (46 per cent), Norway (36 per cent), China (32 per cent), Sweden (31 per cent) and South Korea (11 per cent).

To offset the negative sales development, the group has implemented a range of rapid and forceful measures in the areas of purchasing, investments, rents, staffing and financing.

As the group reported previously, the second quarter will be loss-making since the measures implemented will not compensate for the substantial drop in sales.

The group’s work is focused on ensuring financial flexibility and freedom of action on the best possible terms in a challenging market where business opportunities are also arising. The group is therefore working to secure additional credit facilities in parallel.

Fibre2Fashion News Desk (JL)

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