Home / Knowledge / News / Retail / H&M Group Q2 FY20: sales SEK 28,664 mn; online sales grow

H&M Group Q2 FY20: sales SEK 28,664 mn; online sales grow

30
Jun '20
Pic: H&M
Pic: H&M
The H&M Group, a Swedish multinational clothing-retail company, reported 50 per cent sales decline to SEK 28,664 million in second quarter (Q2) FY20 ended of May 31, 2020 compared to sales of SEK 57,474 million in same period prior year. However, online sales increased 36 per cent during Q2 FY20. Company incurred a loss of SEK 4,991 million in the quarter.
 
“At most around 80 per cent of our stores were closed in the second quarter and in those markets where stores were open, demand was significantly subdued,” Helena Helmersson, CEO at H&M, said in a press release. 
 
Although we took rapid and decisive action which reduced our costs considerably, it was impossible to compensate for the 50 per cent drop in revenue and, as we had previously communicated, the quarter was loss-making.”
 
Gross profit for the quarter were SEK 13,284 million (Q2 FY19: SEK 31,825 million). H&M reported an operating loss of SEK 6,188 million during the reported period compared to operating profit of SEK 5,935 million in Q2 FY19.
 
Sales in top market of H&M were down: Germany declined 40 per cent to SEK 5,187 million (SEK 8,703 million), US fell 68 per cent to SEK 2,341 million (SEK 7,336 million), China’s sales decreased 28 per cent to SEK 2,259 million (SEK 3,119 million), UK sales dropped 53 per cent to SEK 1,749 million (SEK 3,747 million) and sales in Sweden came down 30 per cent to SEK 1,625 million (SEK 2,314  million).
 
Group has further reported that the sales in the period June 1–24, 2020 has decreased 25 per cent. Currently 350 stores, representing 7 per cent of the total number of stores, are still closed. A large number of stores still have local restrictions and limited opening hours. Group’s total 48 of the its 51 online markets are open. 
 
“It is clear that the rapid changes in customer behaviour caused by the pandemic will further speed up the digitalisation of fashion retail. To meet this, we are continuing to adapt the organisation and improve our ways of working, which will make us more flexible, fast and efficient,” Helmersson said. 
 
We are accelerating our digital development, optimising the store portfolio and further integrating the channels. Our leading sustainability work will also contribute to strengthening our position and ensure the long-term positive development of the H&M group.”

Fibre2Fashion News Desk (JL)


Must ReadView All

Pic: Shutterstock

Textiles | On 3rd Dec 2020

PRC overtakes US to turn EU's biggest trading partner

China has overtaken the United States in the third quarter of this...

Pic: Shutterstock

Textiles | On 3rd Dec 2020

Vietnam's textile-garment exports likely to reach $34 bn

Vietnam's textile and garment industry is predicted to earn $33.5-$34 ...

Pic: Shutterstock

Textiles | On 3rd Dec 2020

Uzbek firm to supply cotton fabrics to Ukraine

Uzbekistan's Textile-Contact Company recently signed a $12-million...

Interviews View All

Top executives, Association

Top executives
Association

'Support and Outreach' huge relief for MSMEs

Nuno Venda, ROQ

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Md Hanifur Rahman, Aman Group

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Abhishek Ralli,

Abhishek Ralli

Guide group is a government recognised manufacturing house engaged in the...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Thomas Ong P S, NanoTextile

Thomas Ong P S
NanoTextile

Malaysian company NanoTextile Sdn Bhd taps into the potentials of...

Andreas Lukas, Andritz Nonwoven

Andreas Lukas
Andritz Nonwoven

With forces in engineering and process development, Andritz Nonwoven...

Eric Scholler, Groz-Beckert

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search