Corona closings: H&M only makes a tenth of the previous year's profit

Icon: enlarge

H&M branch in Munich (symbolic picture): 350 stores are to close

Photo: 

Ralph Peters / imago images

The situation is still difficult, but "H&M is holding up well," says company boss Helena Helmersson.

Your Swedish fashion company Hennes & Mauritz closed the financial year up to the end of November 2020 with a profit, despite the week-long corona-related closings of the branches, according to a statement.

H & M's profit was 1.24 billion crowns (120 million euros), however, significantly lower than in the previous year - the sum is only about a tenth of the previous year.

Sales fell by a fifth to 187 billion crowns.

100 new branch openings planned

Further branch closings than those planned so far are not planned, it is said.

According to the information, H&M intends to close around 350 stores this year, mainly "in established markets" - but also open 100 new ones.

In France and Italy, both of which have been badly affected by the pandemic, sales fell by around a quarter each in the H&M financial year.

In the UK, sales fell 16 percent and in the US by 17 percent.

Things went better in Germany and China, with a decline of only three percent each.

Nevertheless, H&M wants to cut around 800 jobs in Germany.

Most recently, a report caused a sensation, according to which young parents in particular should be fired, the fashion retailer rejected this.

H&M had to close four out of five stores worldwide in the first lockdown in the spring, so the group had made a loss from March to May.

In the quarter from June to August, the group returned to profitability.

In the last quarter from September to the end of November, sales fell by 15 percent, and net profit fell by 41 percent year-on-year to around 2.5 billion crowns.

Due to the corona-related restrictions, 1,800 of the Group's 5,000 branches worldwide are currently closed.

In the two months of December and January, sales fell by 23 percent, as H&M announced on Friday.

The group also includes the chains COS, Weekday, Cheap Monday, Monki, & Other Stories and Arket.

Afound is new, an online shop for bargains from all brands in the group and other brands.

Icon: The mirror

apr / AFP