Fashion retailing giant H&M saw a slight uplift in sales this month, following the reopening of some of its stores as global lockdown restrictions start to ease.
However, taken overall, H&M’s initial December-February earnings report, covering 1 December 2020 to 28 February 2021, still showed that net sales decreased by 27 per cent (or 21 per cent if measured in local currencies) compared to the previous year.
Less than the 30 per cent decline in net sales that analysts had reportedly forecast for the period.
Converted to Swedish krona the group’s net sales provisionally amounted to 40.1 billion crowns (around £3.4 billion).
In a statement, the company said: “Sales development was significantly affected by the Covid-19 situation, with extensive restrictions and at most over 1,800 stores temporarily closed.
“Since the beginning of February, a number of markets have gradually allowed stores to reopen and at the end of the quarter around 1,300 stores remained temporarily closed.”
H&M added that online sales had continued to perform well.
Sales in the first two weeks of March were up by 10 per cent in local currencies, compared to the same in 2020. Helped by countries like Germany, H&M’s largest market, and others, having started to allow some stores to open to shoppers. The company said that around 900 stores were still temporarily closed as at 13 March.
Full results for the quarter (December-February) is set to be published at the end of March.
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