The H&M ready-to-wear chain sees its profits fall because of the Covid-19

H&M saw its profits plummet with the health crisis.

The group will close 250 stores around the world.

REUTERS / Regis Duvignau / Files

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Shops closed, falling profits… Health restrictions linked to the pandemic are hitting Swedish ready-to-wear giant H&M head-on.

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In its annual financial report, the group's management announces an annual net profit divided by ten.

Its turnover fell 20% to 187 billion crowns.

It must be said that nearly a third of the 5,000 stores owned by H&M worldwide are temporarily closed.

The chain is however pleased to have managed to keep profits in the green despite the complicated context of the pandemic.

Online sales far from making up for the shortfall

H&M says sales were mostly affected in the second quarter, during which up to 80% of the group's stores were closed globally.

The Swedish clothing giant has particularly suffered in France and Italy, two countries severely affected by anti-Covid lockdowns and restrictions.

It lost respectively -28% of turnover and -24%.

Online sales grew 40% in 2020, and they represent 28% of total annual sales.

But that was not enough to make up for the losses.

For the December-January period, excluding annual results, H&M specifies that turnover is down 23% due to the second wave of the pandemic and the store closings it causes.

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The group had already been closing stores for several years to step up these digital efforts.

In October 2020, H&M announced the closure of 250 stores.

Despite the publication of these results, no additional store closings are announced.

Ready-to-wear, like many other sectors, is

suffering greatly from the health crisis

.

Social plans and legal redress have multiplied among several brands since the outbreak of the pandemic.

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