The H&M Group, a Swedish multinational clothing-retail company, has reported 18 per cent sales decline to SEK 187,031 million (Swedish krona) in its full FY20 ended on November 30, 2020 compared to the sales of SEK 232,755 million in the same period previous year. Group’s profit for the year fell to SEK 1,243 million (FY19: SEK 13,443 million).
“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,” Helena Helmersson, CEO at H&M Group, said in a press release.
Gross profit for FY20 fell SEK 93,544 million (SEK 122,453 million), while operating profit slipped to SEK 3,099 (SEK 17,346 million). H&M’s online sales for the year increased 38 per cent representing 28 percent of the group’s total sales.
“The recent years’ transformation initiatives and investments, focusing on the digital, have been especially important for managing the crisis and this work is continuing at full speed. Customers want to meet us where, when and how they choose in the stores, on our websites, on digital marketplaces and on social media,” Helmersson said.
Sales in Germany fell 11 per cent to SEK 29,684 million (SEK 33,540 million). In US, sales plunged 31 per cent to SEK 20,802 million (SEK 29,976 million) whereas, sales in UK dropped 23 per cent to SEK 11,486 million (SEK 14,897 million). Sales in Sweden came down 11 per cent to SEK 8,015 million (SEK 8,993 million).
“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,” Helmersson said in the release.
