The H & M Group’s net sales in local currency increased by 75% in the second quarter (March-May), but the strengthening of the Swedish krona resulted in a total increase of only 62%. It was.
Revenue reached SEK 4.6509 billion (Euro 4.6 billion / £ 3.9bn / $ 5.6bn) and continued to be affected by the pandemic, with approximately 1,300 stores temporarily closed at the beginning of the quarter. In addition, the stores that could be opened had restrictions on business hours, the number of customers, and store space.
The company doesn’t show similar numbers, but Jeffreys analysts say the report shows the company’s “various developments”, with an organic second-quarter sales decline of 17% to 13% over two years. The first quarter organic drop said it shows. “This is likely to reflect that European regulation and China’s dilution are well offsetting the strong recovery in US demand,” analysts said. “The trend improved significantly early in the third quarter,” he added.
According to H & M, some of the group’s largest markets, such as France and Germany, have been closed for almost three months in a row. However, the situation improved and by the end of the quarter, only 140 stores worldwide remained temporarily closed.
It said the global resumption saw the continuation of the “strong recovery of the H & M Group”. Online sales also “continue to grow very well, which shows that customers appreciate the collection and can shop through their favorite channels.”
And, as those Jeffreys analysts said, the trend has been one of the improvements in sales since the end of the second quarter (almost two weeks from June 1st to June 13th). Sales increased 35% year-on-year in local currency. Importantly, it’s up 2% compared to the same two weeks in 2019. Indeed, the company opened several new locations in the meantime, boosting total sales. However, this trend looks good given that as of June 13, about 180 stores were temporarily closed and most markets are still restricted.
The setback, such as all 50 Malaysian stores having to close at the beginning of the month, does not seem to reverse the generally positive direction that H & M is advancing.
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H & M Group sales will increase in the second quarter, but pandemic restrictions remain an issue
Source link H & M Group sales will increase in the second quarter, but pandemic restrictions remain an issue