PARIS — H&M Group mentioned gross sales pushed previous pre-pandemic ranges in current weeks, however enterprise continues to be affected by crisis-related disruptions.
“As more people are vaccinated, a number of markets have gradually allowed stores to reopen and the H&M group’s strong recovery continues,” the Swedish fast-fashion retailer mentioned in a press release.
In the second quarter ending May 31, H&M posted a 75 p.c 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.
In the June 1 to 13 interval, gross sales climbed 35 p.c in native currencies, a 2 p.c rise when in comparison with 2019.
While the quarterly gross sales determine fell barely wanting analyst expectations, progress marked on the outset of the third quarter is forward of consensus forecasts, analysts at Berenberg mentioned 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 all the way down to 140.
The group, which operates Cos, Monki, & Other Stories, Arket and Weekday along with H&M, has been reducing prices — shedding jobs in Spain, for instance – and renegotiating leases for its retail community for the reason that pandemic struck. Before COVID-19, it had launched into an overhaul of operations to enhance digital companies and spruce up its supply. Signs of enchancment had begun to emerge because the disaster hit.
Executives on the group have mentioned they’d constantly consider the fleet of bodily shops, whilst they’re seeing an curiosity from clients in returning to buy in particular person when potential. In current years, the group has pressured integrating digital procuring avenues with shops as a key precedence.
Forecasts are for a modest tempo of restoration for the fast-fashion trade.
Last week, Zara proprietor Inditex reported improved enterprise in current weeks, with a 5 p.c gross sales rise in native currencies over the May 1 to June 6 interval.
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