Recovery at H&M ‘better than expected’

H&M store in Hammersmith, London
Photo: H&M Group

H&M continued to lose revenue this summer: in the quarter to the end of August, the fast-fashion group sold 16% less than last year. On the positive side, the fashion giant returns to profitability.

 

Reflecting corona uncertainty

H&M Group's preliminary quarterly figures show that the corona crisis is not yet over. In the period between June and the end of August, turnover at local exchange rates was 16% lower than a year earlier. Converted to its own currency, net sales of the Swedish fashion group even fell by 19% to 50.87 billion Swedish krona (4.89 billion euros).

 

"Sales development in the third quarter reflects the Covid-19 situation," says the clothing retailer. The company stresses that at the beginning of the quarter, some 900 of the more than 5,000 stores had been temporarily closed due to coronary measures, and that even at the end of the quarter just over 200 stores remained closed.

 

Nevertheless, H&M Group calls the recovery itself better than expected, in its own words thanks to "appreciated collections together with rapid and decisive actions". Above all, the Swedish company is pleased to return to profitability, something it had not yet expected for the third quarter. The group claims to be able to sell more products at full price and to control costs strongly. The preliminary results show a pre-tax profit of around 2 billion krona (around 190 million euros).