H&M sales halve in second quarter

H and M net sales halved in the second quarter of 2020, tumbling 50% to 28.7bn Swedish krona (£2.4bn) following global lockdowns amid the ongoing pandemic. 

The fashion giant’s local currency net sales also halved in the period between 1 March and 31 May.

E-commerce fared better, however, with online sales up by 36% in Swedish krona and 32% in local currencies. It comes as online sales remain open in 48 of the company’s 51 online markets. 

In its latest trading update, the group also revealed that the group’s total sales during the period 1 June to 13 June decreased by 30% in local currencies against the year prior. 

The fashion giant said that its sales development was “severely affected” by store closures in the period, with 80% of its global stores closed by mid-April. 

The group has now started to gradually reopen stores in a “number” of markets in line with local restrictions. However, it added that the pace of the sales recovery “varies at a large extent between markets”.

Nonetheless, approximately 900 stores, representing 18% of its estate, remain temporarily closed.