STOCKHOLM – High-street fashion icon H&M today said the coronavirus pandemic slashed its 2020 net profit by 90%, with about a third of its some 5,000 stores currently closed.
For its financial year to November, the company reported a net profit of €120 million (RM587.8 million) as sales fell 20%.
“Our measures to mitigate the negative effects of ongoing restrictions and closures are continuing,” said chief executive Helena Helmersson in a statement.
“Although the situation at the time of writing is highly challenging, the H&M group stands strong.”
Despite continued lockdowns and restrictions, H&M said it will not increase the number of outlets – 350 – targeted for closure in the current year.
At the same time, it will open another 100 stores as planned.
The business was especially hard hit in its second quarter, the height of the first wave of the pandemic, when up to 80% of its outlets had to close, said H&M.
Among the worst-affected markets, sales in France plunged 28%, Italy (24%), the United States (17%) and Britain (16%).
China and Germany did better, registering losses of just 3%.
H&M said conditions worsened again in the later part of 2020, as a second wave of the virus swept through. – AFP, January 29, 2021
