Global fashion retailer H&M has seen its sales in the fourth quarter knocked by the Covid-19 pandemic.
H&M’s net sales fell by 10 per cent in local currencies from 1 September to 30 November 2020 in comparison with the same period last year. This contributed to a 18 percent decrease in sales for the 2020 financial year.
The Swedish retail group’s net sales amounted to SEK 52.5bn in the fourth quarter from SEK 61.7bn, while full-year sales for 2020 totalled SEK 187bn.
H&M said it started the year strongly with a “positive momentum” until the first wave of Covid had an impact.
“Extensive social restrictions involving temporary store closures and large drops in customer footfall to physical stores led to a substantial decrease in sales, particularly in the second quarter,” H&M said.
The retailer notes that a “strong recovery” in the third quarter continued for much of the fourth quarter. However, the recovery hit a slowdown as a result of the pandemic’s second wave. Sales dropped by 22 per cent between 22 December and 30 November, while earlier in the quarter sales were down by just 3 percent.
H&M is due to publish its full-year report for the 2020 financial year on 29 January 2021.
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