H&M: makes loss in Q2 due to falling sales
(CercleFinance.com) - On Friday H&M reported a significant loss in its second fiscal quarter, during which nearly 80% of its stores remained closed due to the coronavirus pandemic.
The Swedish ready-to-wear group reported an after-tax loss of nearly 5 billion Swedish kronor (about 480 million euros) in the three months to the end of May, compared with a profit of around 4.5 billion Swedish kronor in the same period last year.
Net sales were slashed in two, reaching 28.7 billion Swedish kronor over the quarter, despite a sound resistance in online sales (+36%).
However, H&M points out that the downturn in its business has slowed significantly since the beginning of June, with sales down 25% year-on-year. It points out that only 350 of its stores, i.e. just 7% of outlets, are still closed.
Copyright (c) 2020 CercleFinance.com. All rights reserved.