H&M: health crisis ravages results
(CercleFinance.com) - H&M has reported Q3 net sales of 50.
8 billion Swedish kronor (c. 4.8 billion euros), down 19% from the 62.5 billion posted a year ago. The group was hit head-on by the pandemic: at the beginning of Q3, over 900 stores out of its total 5,000 were still closed.
In September, sales decreased by 5% y-o-y. At present, 166 stores, i.e. 3% of the total, are still closed due to local restrictions. Q3 after-tax income amounted to 1.8 billion Swedish kronor, half the level in Q3 2019.
The H&M Group has said that it is continuing its transformation, stepping it up with digital investments, optimisation of its store portfolio and increasingly integrated channels.
However, the group plans to close 250 outlets in 2021.
Despite this apparently gloomy news, the share is up almost 8% in late morning trading on Thursday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
8 billion Swedish kronor (c. 4.8 billion euros), down 19% from the 62.5 billion posted a year ago. The group was hit head-on by the pandemic: at the beginning of Q3, over 900 stores out of its total 5,000 were still closed.
In September, sales decreased by 5% y-o-y. At present, 166 stores, i.e. 3% of the total, are still closed due to local restrictions. Q3 after-tax income amounted to 1.8 billion Swedish kronor, half the level in Q3 2019.
The H&M Group has said that it is continuing its transformation, stepping it up with digital investments, optimisation of its store portfolio and increasingly integrated channels.
However, the group plans to close 250 outlets in 2021.
Despite this apparently gloomy news, the share is up almost 8% in late morning trading on Thursday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.