PARIS — H&M Group stated gross sales pushed previous pre-pandemic ranges in current weeks, however enterprise continues to be affected by crisis-related disruptions.
“As extra individuals are vaccinated, various markets have progressively allowed shops to reopen and the H&M group’s robust restoration continues,” the Swedish fast-fashion retailer stated in an announcement.
Within the second quarter ending Could 31, H&M posted a 75 % bounce in gross sales in comparison with the identical time final 12 months, when a wave of retailer closures swept throughout its huge retail community.
Within the June 1 to 13 interval, gross sales climbed 35 % in native currencies, a 2 % rise when in comparison with 2019.
Whereas the quarterly gross sales determine fell barely in need of analyst expectations, progress marked on the outset of the third quarter is forward of consensus forecasts, analysts at Berenberg stated in a analysis notice to shoppers, predicting forecasts to stay broadly unchanged.
H&M flagged ongoing pandemic-related restrictions to retailer operations, with shops in Germany and France principally closed all through the interval. There have been indicators of enchancment over the quarter, nonetheless, with the variety of closed shops declining from over a thousand on the outset of the interval right down to 140.
The group, which operates Cos, Monki, & Different Tales, Arket and Weekday along with H&M, has been chopping prices — shedding jobs in Spain, for instance – and renegotiating leases for its retail community because the pandemic struck. Earlier than COVID-19, it had launched into an overhaul of operations to enhance digital providers and spruce up its provide. Indicators of enchancment had begun to emerge because the disaster hit.
Executives on the group have stated they’d constantly consider the fleet of bodily shops, whilst they’re seeing an curiosity from prospects in returning to buy in individual when attainable. In recent times, the group has harassed integrating digital procuring avenues with shops as a key precedence.
Forecasts are for a modest tempo of restoration for the fast-fashion business.
Final week, Zara proprietor Inditex reported improved enterprise in current weeks, with a 5 % gross sales rise in native currencies over the Could 1 to June 6 interval.
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