H&M is planing to shut down hundreds of stores next year as the coronavirus crisis drives more shoppers online, the world’s second biggest fashion retailer said on Thursday.
The Swedish brand, H&M is aiming to cut their store number by 250 in 2021, representing 5% of its current network.
Chief Executive Helena Helmersson said: “Although the challenges are far from over, we believe that the worst is behind us and we are well placed to come out of the crisis stronger.”
“Overall, Q3 is a better quarter than expected and we think H&M continued to manage well what they could directly influence,” analysts at JPM said in a note.
H&M said its September sales were down 5% Y-o-Y. In August, it fell 19%.
Of more than 5,000 stores worldwide, 3% remain temporarily shut against around 80% at the height of lockdowns, the fashion chain said.
The company’s pretax profit fell to 2.37 billion crowns ($265.6 million) in its fiscal third quarter, from the previous year 5.01 billion crowns.
Source: Reuters
