“Our pace of recovery varies greatly between markets, partly because local restrictions differ, but has so far been better than expected,” said Helena Helmersson, CEO, in a statement.
The group saw net sales for Q2 slide 50 percent.
“In the period 1–24 June 2020 sales decreased by 25 percent in local currencies compared with the same period in 2019.
“Although consumption generally remains subdued, our recovery as restrictions have been eased shows that our assortment is relevant and appreciated by our customers,” she added.
Rapid adjustments to product purchasing and buying plans meant that the stock-in-trade was able to be reduced somewhat in the second quarter compared with the previous year.
“However, since there is an oversupply of spring products throughout the industry, and the market remains weakened, we expect markdowns in relation to sales to increase again in the third quarter. We are continuing to adjust costs to mitigate the negative impact of the Covid-19 situation,” said Ms. Helmersson.
To meet the faster growth of digitalisation of fashion retail, H&M is continuing to adapt its organisation and improve its ways of working, so it will be more flexible, faster and more efficient.
“We are accelerating our digital development, optimising the store portfolio and further integrating the channels,” she said.
