H&M sales tumbled in May quarter
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H&M says its sales decline in May was slightly below expectations, and less dramatic than during March and April as stores began to reopen across Asia and Europe.
The Swedish-headquartered fast-fashion retailer said net sales in the three months to May 31 were down by 50 percent year on year to US$3.1 billion.
More encouragingly, sales in the first 13 days of June were down 30 percent, suggesting a gradual return of customers to stores.
H&M has 5058 stores worldwide and almost one in five of those remain shuttered due to the Covid-19 pandemic, the company said in a statement.
The decline in sales was less than at rival Inditex, the parent of Zara, which last week reported a 34-per-cent decline in the week of June 2 to 8.
But an H&M spokesperson said the pace of the sales recovery “varies largely between markets” around the world.
Questions & Answers
Q.How much did H&M's net sales decrease in the three months to May 31?
How much did H&M's net sales decrease in the three months to May 31?
Net sales fell by 50 percent year on year, totalling US$3.1 billion. This decline was described as slightly below expectations and less dramatic than in March and April.
Q.What percentage of H&M's stores remain closed due to the pandemic?
What percentage of H&M's stores remain closed due to the pandemic?
Almost one in five of H&M's 5058 stores worldwide are still shuttered. This indicates that over 1,000 stores are currently not open for business.
Q.How did H&M's sales decline compare to its rival, Inditex?
How did H&M's sales decline compare to its rival, Inditex?
H&M's sales decline was less severe than Inditex's. Inditex, parent company of Zara, reported a 34-percent decline in sales during the week of June 2 to 8.
Q.What do the sales figures for the first two weeks of June suggest?
What do the sales figures for the first two weeks of June suggest?
Sales were down 30 percent in the first 13 days of June, suggesting a gradual return of customers to stores. This indicates a positive trend compared to previous months.
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