// H&M sales drop 60% due to coronavirus pandemic
// 80% of stores remain closed globally
H&M has seen its sales drop by 60 per cent due to the impact of Covid-19 on trading.
Between March 1 and May 6, group sales declined by 57 per cent year-on-year in local currencies, as 80 per cent of H&M’s stores remain closed.
However, since the end of April, H&M has gradually started reopening stores in a number of markets where local restrictions and social distancing rules allow.
Meanwhile, online sales have increased by 32 per cent in the same period.
H&M saw its sales in Italy drop by a colossal 80 per cent, Spain 76 per cent, France and US 71 per cent, Poland 59 per cent, Japan 58 per cent, Denmark 51 per cent, Finland 49 per cent, Russia 47 per cent, Germany 46 per cent and Norway 36 per cent.
In Sweden, where a full lockdown has not been implemented, sales dropped 31 per cent.
Meanwhile in China they fell 32 per cent, and in South Korea 11 per cent.
H&M said it expects its second quarter to be loss-making as sales will be significantly lower.
However, it said its liquidity is good and it is focused on “ensuring financial flexibility and freedom of action on the best possible terms in a challenging market where business opportunities are also arising”.
The group is therefore working to secure additional credit facilities in parallel.