H&M sales plummet between March and May

The Swedish fashion giant’s total sales for the period between March 1 and May 6 decreased by 57% globally when compared with the same period in 2019.

The retailer said that online sales, which are currently available for customers in 46 of the company’s 51 markets, increased by 32% in the same period.

Despite the upturn in ecommerce sales, H&M said that the second quarter of this year will still be loss-making as cuts to operating expenses, such as furloughing staff, withholding store rents and rowing back on buying stock, would not compensate for the “substantial drop in sales”.

Since mid-March, H&M said around 80% of its 5,061-strong global store estate has been shuttered due to the coronavirus pandemic. However, since the end of April, the fashion retailer has started “gradually reopening stores in a number of markets – in line with local restrictions and rules on social distancing”.

The retailer said that, at present, 3,050 of its stores – around 60% of its total estate – remained closed temporarily. H&M said that trading at reopened stores had so far been “muted”.

In terms of international markets, H&M said that sales were down 60% in the UK, 49% in Germany, 71% in France and 80% in Italy.

However, the fashion giant said its group liquidity remained “good”.