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H&M Group Reports Dramatic Sales Decline in China as it Closes More Stores in Europe

March 16, 2020

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H&M group has temporarily shuttered stores across large parts of Europe, as governments take extraordinary measures to try and contain the escalating coronavirus pandemic.

The closures signal more pain ahead for retailers, already suffering the aftershock of a widespread shut down in January and February across China, the first country hit by the outbreak.

H&M group said overall sales still rose 5 percent in local currencies in the period from 1 December to 29 February. In China, sales were trending up 27 percent year-over-year, but after a spate of store closures beginning late January, sales plummeted. Overall, sales in China were down 24 percent in the first quarter. At its peak, the company shut 334 out of the group’s 518 stores in the country — a stark warning of what may be about to play out elsewhere.

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