Slump in sales in stationary sales: the fashion chain H&M earned significantly less money in the past financial year. The phenomenon is exemplary for the entire industry.
Photo series with 12 pictures
The fashion company Hennes & Mauritz brought fewer clothes to customers in the Corona year 2020 than in the previous year. The H&M Group’s net sales fell in the financial year from December 2019 to November 2020 by 18 percent to around 187 billion Swedish kronor (about 18.3 billion euros), as the group announced in Stockholm on Tuesday.
The H&M Group had a strong start to the year before the first wave of the coronavirus pandemic left its mark. The restrictions on public life, the temporary shop closings and significantly fewer customers in the branches contributed to the extensive decline in sales, especially in the second fiscal quarter.
Second corona wave hits H&M strongly
But even in the last quarter, which runs at H&M from September to November, the numbers fell by 10 percent. Above all, the second corona wave showed its effects in the second half of the quarter, the group explained.
H&M has not yet given any information about the profit. Already in the first half of the year there was a full minus of 3.06 billion crowns – compared to an increase of 5.37 billion crowns in the same period of the previous year. Not least because of this, H&M wants to close around 250 branches worldwide, in Germany hundreds of jobs are at risk.
The significant drop in sales is exemplary for the entire fashion industry. Numerous companies, including large chains such as Primark, had received significantly less money in the spring due to the extensive lockdowns in many countries. Several fashion retailers, including Esprit and Pimkie, got into payment difficulties due to the Corona crisis.