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H&M has announced that net sales fell by 10% in the quarter ended 30 November 2020, following the impact of store closures and ongoing Covid-19 restrictions around the world.
In its latest trading update, the group noted that overall sales have fallen by 18% in its full-year of trading, despite “starting the year strongly” with a “positive momentum” until the onset of the pandemic.
In a statement, the retailer said: “Extensive social restrictions involving temporary store closures and large drops in customer footfall to physical stores led to a substantial decrease in sales, particularly in the second quarter.”
It noted that there was a “strong” recovery in the third quarter, however, which continued into the fourth quarter.
Between 1 September and 21 October, sales decreased by only 3% in local currencies against the prior year. Between 22 October and 30 November, however, sales plummeted 22% as the “recovery transitioned into a new slowdown” as a result of the pandemic’s second wave.
The group confirmed that it will issue its next full-year report on 29 January 2021.
