The fashion chain H&M is shrinking. Around 250 branches are expected to close in 2021. The company was recently in the black again despite the Corona crisis.
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The Swedish fashion retailer Hennes & Mauritz (H&M), which was hit by the Corona crisis, wants to reduce its network of branches. In the coming year, the bottom line is that the number of stores will shrink by around 250, as the company announced on Thursday when it presented its final figures for the third fiscal quarter, which ran until the end of August.
The Group’s recovery from the crisis continues. As already known, the retailer managed to return to the black in the summer quarter, after H&M posted losses in the second quarter, which was particularly hard hit by the pandemic.
166 H&M branches still closed due to Corona
“Although the challenges for us are far from over, the worst should be behind us,” said CEO Helena Helmersson, according to the announcement. Business is recovering faster than expected. “We have seen strong and profitable growth in online business and more and more stores are now reopening.”
Currently 166 of the approximately 5,000 H&M branches are still closed, it said. At the end of the quarter, more than 200 stores had not yet resumed operations. The pandemic also had a heavy impact on the third quarter.
As already known, the group had turned over around 50.9 billion Swedish kronor (around 4.83 billion euros) in the reporting period; calculated in the respective national currencies, this was a decline of 16 percent. After taxes, the profit was more than halved to 1.82 billion crowns. For September, H&M reported a decline in revenues of five percent.