Virus resurgence hits H&M sales, cuts promising recovery, Retail News, ET Retail

Virus resurgence hits H&M sales, cuts promising recoveryStockholm, Dec fifteen (AP) Swedish manner retailer H&M says its profits fell ten per cent in the fourth quarter as the next wave of the COVID-19 pandemic stalled customer expending, chopping short a promising restoration noticed in the third quarter. The Stockholm-centered business explained Tuesday ahead of reporting entire fourth quarter earnings in January that profits in the September to November period of time dropped to fifty two.five billion Swedish kronor (USD six.twenty five billion) from sixty one.7 billion kronor a year before.

Product sales for the entire fiscal year, which runs for the twelve months as a result of November, stood at 187 billion kronor, down 18 per cent.

H&M explained that the entire year 2020 was marked by the coronavirus pandemic for the business, just one of the world’s most significant budget manner merchants, however the year took off with “a constructive momentum.”

“The H&M group started the year strongly and with a constructive momentum right until the initially wave of COVID-19 had an influence,” the business explained in a quick statement.

“Comprehensive social limits involving short-term retail store closures and huge drops in shopper footfall to actual physical shops led to a substantial reduce in profits, particularly in the next quarter.” A robust profits restoration followed in the third quarter, continuing for significantly of the fourth quarter ahead of suffering “a new slowdown as a consequence of the pandemic’s next wave.” The business will report its entire fourth quarter and 2020 earnings on January 29. (AP) AAR AAR