At H&M, things are looking up: The fashion group was able to write black figures again in the third quarter. Before that, the company had a loss of several hundred million euros.
After the business slump in spring as a result of the Corona crisis, the world’s second largest fashion group H&M sees itself on the road to recovery. According to initial calculations, the Swedish fashion chain managed to return to the black in the third quarter, as H&M announced on Tuesday.
“The recovery of the H&M Group is better than expected,” it said. Fewer discounts than feared and strong cost controls would have promoted the return to profitability.
The board of directors put the pre-tax profit at around two billion crowns (around 200 million euros). Net sales fell by 19 percent to 50.9 billion crowns (around 5 billion euros).
Loss of more than 600 million euros
In the second quarter, H&M had posted a loss of around 50 percent in sales before taxes of 6.48 billion crowns (around 620 million euros). The board of directors counteracted this with cost reductions. Group boss Helena Helmersson fears that price discounts could also burden in the third quarter.
At the beginning of the quarter, around 900 of the more than 5,000 stores belonging to the group were temporarily closed, the statement said. By the end of August this number had shrunk to a good 200 branches.