H&M sales impacted by coronavirus
H&M has said its group sales rose by 8% to SEK54,948 million in its first quarter, although trading in the second half of the period was impacted by the outbreak of coronavirus.
From 1 December to 23 January, sales in China increased by 27% in local currency, but demand fell significantly as the virus spread. As a result, H&M’s group sales in the country dropped by 24% across the quarter. H&M said 334 of its 518 stores in China were closed in February at the peak of the virus.
Excluding China, Hong Kong, Singapore, Macau, Japan and Taiwan, H&M group’s sales increased by 7% in local currencies.
H&M said sales to date in March have been negatively in Europe due to the spread of the virus. All of the group’s stores are temporarily closed in Italy, Poland, Spain, the Czech Republic, Bulgaria, Belgium, France and partly in Greece. On Monday, stores in Austria, Luxembourg, Bosnia-Herzegovina, Slovenia and Kazakhstan were also closed.
However, H&M said sales in China have gradually started to recover as the situation in the country has improved.
