Hennes & Mauritz (H&M) is certainly not immune to the coronacrisis. The Swedish company experienced a 16% decrease in sales in the third quarter of its broken financial year. This was often due to the fact that stores worldwide had to close their doors. The profit was also significantly lower, as was reported in a provisional trade update.
H&M will have a turnover of DKK 50.9 billion (EUR 4.9 billion) in the three months to August. The pre-tax profit will be about 2 billion kroner, compared to 5 billion kroner a year earlier. The company also benefits from cost savings.
At the beginning of the quarter, some 900 of the more than 5000 H&M branches were closed due to lockdown measures. At the end of the quarter, some 200 stores kept the doors closed.
According to the company, the recovery is progressing faster than expected. Lower performance was also widely expected in the markets. On 1 October H&M will come out with definitive figures.