Free Subscription

  • Access 15 free news articles each month


Try one month for $5
  • Unlimited access to news,insights and opinions
  • Quarterly and weekly magazines
  • Independent research reports and forecasts
  • Quarterly webinars with industry experts
  • Q&A with retail leaders
  • Career advice
  • Exclusive Masterclass access. Part of Retail Week 2021

H&M sales dampened by second Covid-19 wave

H&M, the world’s second-biggest fashion retailer, said on Tuesday that local-currency sales fell 10 per cent in its fourth quarter, with a pronounced slowdown in the final month as the second wave of coronavirus restrictions curbed spending.

The Swedish rival to Zara owner Inditex said a recovery seen in the previous quarter had continued through much of the fourth quarter but that sales had been hit again from the end of October.

“Between 22 October and 30 November sales decreased by 22 per cent compared with the corresponding period last year, as the recovery transitioned into a new slowdown as a result of the pandemic’s second wave,” H&M said in a statement.

Sales in the quarter fell to 52.5 billion Swedish crowns (US$6.25 billion) from 61.7 billion a year earlier, although the local-currency drop from the beginning of September to October 21 was only 3 per cent versus a year earlier.

“H&M’s sales were showing good resilience prior to the latest wave of lockdowns, however they may now be affected by further restrictions on stores, such as in H&M’s largest market Germany,” RBC analyst Richard Chamberlain said in a note.

Citi analysts said they viewed the overall result as encouraging and reflecting “the path of transition H&M were undertaking pre-Covid”. 

H&M issues its full fourth quarter report on January 29.

  • Reporting by Johannes Hellstrom; additional reporting by Helena Soderpalm;  Editing by Simon Johnson, Niklas Pollard and Alexander Smith, of Reuters.

You have 7 free articles.

Masterclasses are for professionals only

Only $5 p/m for first 3 months
Become a Professional Already a professional? Login
  • Daily exclusive Members Only content straight to your inbox
  • Access to exclusive Retail Week events including all 4 Masterclasses 28 February - 3 March
  • Retail insights and intelligence
  • On-demand videos with industry professionals
  • Weekly careers advice specific to retailers
  • Independent research reports and forecasts
  • Q&A with industry experts
  • Content, content, content! Weekly and quarterly magazines