We inform you that on this website we use our own and third-party cookies to collect information about its use, improve our services and, where appropriate, display advertising by analyzing your browsing habits. You can expressly accept its use by pressing the "ACCEPT" button or configure and select the cookies you want to accept or reject in the settings. You can also get more information about our cookie policy here.

The global fashion business journal

Sep 28, 20204:18am

H&M grows 8% in first quarter weighed down by the impact of the coronavirus in China

The Swedish fashion retailer has reduced its sales in China by 24% in the period, which coincides with the surfacing and first weeks of the Covid-19 outbreak.  

Mar 16, 2020 — 4:02pm
MDS
Save

H&M grows 8% in first quarter weighed down by the impact of the coronavirus in China    

 


Coronavirus penalizes H&M results. The Swedish fashion retailer ended its first quarter (from December 1 to February 29) with a growth of 8%, weighed down by the coronavirus crisis in China at the time.  The group’s sales in the first quarter stood at SEK 55 billion ($5.6 billion), according to preliminary results released today.  


Although the company has managed to maintain the growth rate of previous quarters, the forced closure of its stores in China has had a major impact on its results. Between December 1 and January 23, the period during which the coronavirus impact was limited to Wuhan City, H&M grew 27% in China.  

 

  

 

 

However, the development of the virus and the forced closure of stores led the group to reduce its business in the country by 24% in the quarter. At its peak, 335 of the 518 stores in China were closed. China is the fifth-largest market for H&M. In 2019, the company reached sales of 12.1 billion Swedish crowns ($1.2 billion) in the country, a 12% increase than in 2018.  


 Excluding the first affected countries, China, Singapore, Japan and Taiwan, H&M increased its revenues by 7% during the period. In Europe, the company has explained that its sales were affected in March by the widespread of the virus. 

 

  

Advertising
Participation rules

info@themds.com

 

Validation policy for comments: 

 
MDS does not perform prior verification for the publication of comments. However, to prevent anonymous comments from affecting the rights of third parties without the ability to reply, all comments require a valid email address, which won’t be visible or shared.
 
Enter your name and email address to be able to comment on this news: once you click on the link you will find within your verification email, your comment will be published.

0 comments — Be the first to comment
...