Fashion Giant Struggles as Stores Close, Online Sales Thrive

  • H&M’s net sales halved in Q2 2020
  • E-commerce sales up by 36% in Swedish krona and 32% in local currencies
  • Total sales decreased by 30% between 1 June to 13 June
  • 80% of global stores closed by mid-April, now gradually reopening
  • Approximately 900 stores remain temporarily closed

H&M’s net sales plunged by 50% in the second quarter of 2020, reaching 28.7 billion Swedish krona (£2.4bn), due to global lockdowns during the pandemic. Local currency net sales also halved between March 1st and May 31st. Despite store closures, e-commerce sales surged by 36% in Swedish krona and 32% in local currencies, as online operations remained open in 48 of its 51 markets. The company reported a 30% drop in total sales between June 1st to June 13th compared to the previous year. H&M revealed that store closures severely impacted sales, with 80% of global stores shut by mid-April. Now, they’re gradually reopening in line with local restrictions, but around 900 stores (18% of its estate) remain temporarily closed.

Factuality Level: 7
Factuality Justification: The article provides accurate and objective information about H&M’s sales performance during the pandemic, including specific numbers and details on e-commerce growth. It also mentions the impact of store closures and the gradual reopening process. However, it could provide more context or background information on the fashion industry as a whole to make it more informative.
Noise Level: 3
Noise Justification: The article provides relevant information about H&M’s sales performance during the pandemic and how it was affected by store closures and increased e-commerce. However, it lacks in-depth analysis or exploration of long-term trends or possibilities, accountability, scientific rigor, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: H&M’s stock price and the retail industry
Financial Rating Justification: The article discusses H&M’s financial performance during the pandemic, including a significant decrease in net sales and store closures, which can impact the company’s stock price and the overall retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

Reported publicly: www.retailsector.co.uk