H&M expects to post profit in Q3
Sep. 15, 2020
In the third quarter 2020, for the period June 1, 2020 to August 31, 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, the company said in a statement, net sales decreased by 19 percent to 50,870 million Swedish krona (5,807 million dollars). The company added that more full-price sales combined with strong cost control enabled the company to turn to profit in the third quarter as preliminary results show profit before tax of approximately 2 billion Swedish krona.
H&M said that sales development in the third quarter reflects the Covid-19 situation. At the beginning of the quarter approximately 900 of the group’s more than 5,000 stores were temporarily closed, while at the end of the quarter above 200 stores were temporarily closed.
The company further added that as a result of positive response to its collections together with rapid and decisive actions, the H&M group’s recovery is better than expected.
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