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Hennes & Mauritz Q2 2020 results down due to store closures amid COVID-19 pandemic.

NORDIC BUSINESS REPORT-June 29, 2020-Hennes & Mauritz Q2 2020 results down due to store closures amid COVID-19 pandemic

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Fashion retailer Hennes & Mauritz AB (H & M) (STO:HMB) reported on Friday a loss after tax of SEK4,991m, or SEK3.02 per share, for the second quarter of 2020, from 1 March 2020 to 31 May 2020.

This was a decline over profit after tax of SEK4,569m, or EPS of SEK2.76, in Q2 2019.

Net sales for the quarter decreased by 50% to SEK28,664m, as compared with SEK57,474m in Q2 of 209. In local currencies, net sales decreased by 50%. Online sales for the quarter increased by 36% in SEK and 32% in local currencies.

According to the company, during the quarter stores were temporarily closed in many markets due to the COVID-19 pandemic. In mid April 2020, about 80% of the group's stores were temporarily closed.

H&M said it has taken rapid and forceful action to manage the COVID-19 situation. This has been done in all parts of the business, including areas such as product purchasing, investments, rents, staffing and financing. Since the majority of stores were closed, there was greater focus on the digital sales channels.

Currently 350 stores, representing 7% of the total number of stores, are still closed. A large number of stores still have local restrictions and limited opening hours. A total of 48 of the group's 51 online markets are open.

(EUR1.00=SEk10.49)

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Publication:Nordic Business Report
Article Type:Financial report
Date:Jun 29, 2020
Words:263
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