Good Signs From The Fashion Industry: H&M is Back to Profit

Despite the Corona effects, hopeful news from Sweden has been published. The H&M company indicated that sales development in the third quarter reflected the Covid-19 situation. At the beginning of the quarter approximately 900 of the group’s more than 5,000 stores were temporarily closed. At the end of the quarter just above 200 stores were temporarily closed.

In the third quarter 2020 – 1 June 2020 to 31 August 2020 – the H&M group’s net sales decreased by 16 percent in local currencies compared with the corresponding period last year. Converted to SEK net sales decreased by 19 percent to SEK 50,870 m (EUR 4,7 m). As a result of appreciated collections together with rapid and decisive actions, the H&M group’s recovery is better than expected.

More full-price sales combined with strong cost control enabled the company to already turn to profit in the third quarter. Preliminary results show profit before tax of approximately SEK 2 billion (EUR 188,5 m). The final results for the third quarter and the nine-month period 1 December 2019 – 31 August 2020, will be published on 1 October 2020.