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H&M Group reports sales down by 18%

Feb 1, 2021 Sweden
H&M Group reports sales down by 18%
The Sweden-based fashion group announced net sales amounting to 187 031 million Sweden Krona (22.45 billion US dollars) in the 2020 financial year. In local currencies, net sales decreased by 18%
“With strong, profitable online growth and good cost control we succeeded in ending the year in profit and with a strong financial position. Taking decisive measures quickly, combined with an attractive customer offering, led to a better recovery than expected up until the second wave of the pandemic struck. Our measures to mitigate the negative effects of ongoing restrictions and closures are continuing. Although the situation at the time of writing is highly challenging, the H&M group stands strong (...) We are continuing our initiatives for digital growth, integration of the channels and optimisation of the store portfolio. Speed and flexibility will be even more important going forward, particularly in the supply chain, to ensure the best customer offering and increase availability in all channels. Our key focus remains on developing strong, unique brands in order to always offer the best combination of fashion, quality, price and sustainability. The percentage of recycled and sustainable materials in the collections is consistently increasing and our brands are offering an ever-growing range of services for a more sustainable lifestyle. Together with our transformation initiatives this will help increase our resilience and adaptability and will contribute to sustainable and profitable growth for the H&M group”, commented CEO Helena Helmersson.


Fourth Quarter Results

(1st September 2020 – 30th November 2020)

H&M group’s net sales amounted to 52.55 billion Sweden Krona (6.3 billion US dollars) in the fourth quarter. In local currencies, net sales decreased by 10%. A strong recovery at the start of the quarter was significantly slowed when the second wave of the pandemic again led to extensive new restrictions and lockdowns. At the most, just over 20%of the group’s stores were closed. Gross profit, in the period, amounted to 27.38 billion Sweden Krona (3.3 billion US dollars) which corresponds to a gross margin of 52.1%. The group’s profit after tax amounted to 2.49 billion Sweden Krona (298 million US dollars).
   

Full Year Results

(1st December 2019 – 30th November 2020)

The H&M group’s net sales amounted to 187.03 billion Sweden Krona (22.45 billion US dollars) in the 2020 financial year. In local currencies, net sales decreased by 18%. Sales development was significantly negatively affected by the pandemic, particularly in the second quarter when stores were temporarily closed in most markets; at the most, approximately 80% of the group’s stores were closed. Gross profit amounted to 93 544 million Sweden Krona (11 228 million US Dollars). This corresponds to a gross margin of 50.0%.

Group' Stores

As a result of the second wave of the pandemic and the associated restrictions and temporary closure of more than 1 800 stores (36% of the group’s total of around 5 000 stores), net sales decreased by 23% in local currencies in the period from the 1st of December 2020 to the 27th of January 2021 compared with the same period the previous year.

According to H&M, around 100 new stores are planned to open in 2021, while 350 stores are planned to close in the same period.

Related Organizations

  • Swedish Shoemakers Association

    Swedish Shoemakers Association

    Sweden