• Home
  • News
  • Business
  • H&M’s Q4 net sales drop by 10 percent

H&M’s Q4 net sales drop by 10 percent

By Prachi Singh

15 Dec 2020

Business

In the fourth quarter of 2020, the H&M group’s net sales decreased by 10 percent in local currencies compared with the corresponding period last year. For the full financial year, the company said in a statement that net sales decreased by 18 percent in local currencies. Converted to SEK the group’s net sales amounted to SEK 52,543 million Swedish krona compared to 61,694 million Swedish krona in the fourth quarter 2019, while for full-year 2020 net sales amounted to 187,025 million Swedish krona compared to 232,755 million Swedish krona.

The company added that H&M group started the year strongly and with a positive momentum until the first wave of Covid-19 had an impact. Extensive social restrictions involving temporary store closures and large drops in customer footfall to physical stores led to a substantial decrease in sales, particularly in the second quarter.

A strong recovery in the third quarter continued for much of the fourth quarter. Between September 1 and October 21, sales decreased by 3 percent in local currencies compared with the same period last year. The company further said that between October 22 and November 30, sales decreased by 22 percent compared with the corresponding period last year, as the recovery transitioned into a new slowdown as a result of the pandemic’s second wave.

Picture:H&M media gallery