H&M's revenue in Q3 of fiscal 2019-2020 decreased by 19%
Revenue from one of the world's largest clothing retail chains Hennes & Mauritz (H&M) in the third quarter of the 2019-2020 financial year (ended August 31) fell by 19% year-on-year, to 50.87 billion Swedish kronor ($5.8 billion), according to preliminary results of the company.
At the same time, analysts polled by Reuters expected a reduction of 18%. At the same time, revenue expressed in local currencies in the regions where we operate decreased by 16%.
"Sales in the third quarter reflect the situation with COVID-19. At the beginning of the quarter, approximately 900 of the group's more than 5,000 stores were temporarily closed. At the end of the quarter, just over 200 stores were temporarily closed," the report explains.
The company also points out that preliminary results show a pre-tax profit for the quarter of approximately 2 billion Swedish kronor ($228 million). At the same time, it's worth noting that the final figures for the quarter, and accordingly for the entire current financial year, will be published on October 1.
H&M was founded in 1947 in Sweden. The company produces and sells clothing. In addition to H&M, it also develops such brands as COS, Monki, Weekday, Cheap Monday, etc. The company's network includes more than 5 thousand stores in 74 world markets. The number of employees is about 179 thousand people.
In the third quarter 2020, i.e. in the period 1 June 2020 to 31 August 2020, the H&M group’s net sales decreased by 16 percent in local currencies compared with the corresponding period last year. Converted to SEK net sales decreased by 19 percent to SEK 50,870 m (62,572).