Hennes & Mauritz Swedish fashion retailer, on Monday reported a sharp but slightly smaller than expected drop in second-quarter H&M sales as coronavirus restrictions began to ease in many of its markets and stores began to reopen.
the world’s second-biggest fashion retailer H& M’s net sales for the three months to May 31 fell 50% year on year to 28.7 billion crowns ($3.1 billion). Analysts had on average forecast a fall to 27.5 billion, Refinitiv data shows.
Online sales helped partially mitigate the store closures, with reported web sales increasing by 36% and local currency sales by 32% during period. It said online sales are open in 48 of its 51 online markets.
H&M began gradually reopening stores in a number of its markets from the end of April. It has around 900 stores, representing 18% of its total 5,058, that are still temporarily closed.
Biggest rival Inditex, the owner of Zara, last week reported a loss on a 44% sales drop for the February-April period and said that constant-currency sales were down 34% over June 2-8.
Shares in H&M, which on April 3 flagged that it would make its first quarterly loss in many decades in the second quarter, were down 24% this year at Friday’s closing price.
H&M, which reports full quarterly earnings on June 26, said that 18% of its 5,058 stores remain closed temporarily.