Corona-crisis fashion chain H&M drives in the red | economy

the H&M-had to remain in stores during the Corona-crisis in a myriad of pedestrian zones, closed, presses heavily on the outcome of the Sweden. Also, the Online

Corona-crisis fashion chain H&M drives in the red | economy

the H&M-had to remain in stores during the Corona-crisis in a myriad of pedestrian zones, closed, presses heavily on the outcome of the Sweden. Also, the Online sales are not able to the field.

Stockholm (Reuters) - Swedish fashion chain Hennes & Mauritz (H&M) has retracted due to the Corona-crisis in the second quarter, a clear Minus.

during The reporting period, which runs at H&M from the beginning of March until the end of may, and hence the current peak phase of the pandemic included in Europe, amounted to the loss after tax to 4.99 billion Swedish crowns (EUR 477 million). The group announced in Stockholm. In the prior-year quarter, the H&M group had retracted a profit of 4.57 billion crowns. Germany, the strongest sales H&M market remained more - even if the local revenues collapsed by more than 40 percent.

According to group information in mid-April, around 80 percent of H&M stores worldwide sealing. While the Online business grew throughout the quarter by almost a third, however, as already known, the total revenues fell compared to the prior-year period, half to 28,66 billion Swedish crowns (2.7 billion euros). The group now wants to reduce in the course of the year the branch network in the world under the dash by around 40 shops.

Also, for the first half of the fiscal year from December 2019 to may 2020, a hefty Minus is, therefore, to book: After taxes, the loss for this period amounted to 3.06 billion crowns (293 million euros), compared with an increase of 5,37 billion kronor in the prior-year period. Total revenues declined by almost a quarter to 83,61 billion crowns (7,99 billion Euro).

Despite the impact the company has reported sufficient liquidity: at the end of may the cash was, therefore, was to 12.7 billion Swedish crowns.

Nevertheless, the positive sign under which H&M CEO Helena Helmersson your Post at the end of January of the founder's grandson, Karl-Johan Persson took over, by the Corona-crisis. Before the Corona have taken pandemic to have H&M showed strong performance, said Helmersson now. This and the quick Act against the negative consequences of the pandemic have convinced you that the H&M group come strengthened out of the crisis.

Meanwhile, it should also become clear how important it is to meet the needs of the customer through the Interaction between digital channels and physical branches. "It is clear that the pandemic caused rapid changes in customer behaviour will accelerate the digitalisation of the fashion trade," said Helmersson. Positive was also that the revenues would be recovered after the end of April, launched re-opening of the stores faster than expected. Nevertheless, the information is estimated, according to the company's 900 stores, almost every fifth of the 5058 shops the H&M group continues to be temporarily closed.

© dpa-infocom, dpa:200626-99-572329/3

Updated Date: 29 June 2020, 00:34

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