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H&M has announced it has swung to a pre-tax loss of SEK 1.1bn (£92m) in its first quarter trading update ending 28 February 2021.
As the group continues to be affected by the Covid-19 pandemic, at the most, it saw around 36% of its total number of stores (1,800 stores) temporarily closed.
The retailer’s net sales dropped 21% in local currencies to SEK 40.1bn (£2.2bn) as a result of the second wave of the pandemic and extensive restrictions.
However the group praised its online performance as “doing very well” as the majority of customers turned to e-commerce whilst the stores remained shut.
Commenting on the results, Helena Helmersson, CEO, said: “Although it is still largely a matter of managing the negative effects of recurring store closures, it is clear that customers appreciate our offering. When markets have been allowed to open, store sales have picked up while at the same time online sales have continued to develop very well.
“Our digital initiatives are continuing, along with the development of our physical store network. Looking ahead, we will strengthen the interaction between the channels further in order to offer customers the best experience with all of our brands.”
