H&M profit declines; to close 350 stores worldwide.

3rd quarter profit fell by over 50% compared to the previous year.


Carl Adrian

2 Oct, 2020

H&M profit declines; to close 350 stores worldwide. | BEAMSTART News

Global fashion retail brand, H&M, plans to close 350 stores worldwide as the global pandemic pushes more people to shop online.

Despite the clothing giant reporting a better than expected 3rd-quarter profit, total net profit has fallen by over 50%. The company also added that it will only be opening 100 new stores in 2021.

"The rapid changes in customer behaviour have been accelerated due to the pandemic. The H&M group is therefore now stepping up the pace of its transformation," the company said in its quarterly report. 

At present, revenue generated from online sales only represent a quarter of the company's total sales. However, digital revenue grew by 28% in the 3rd quarter of 2020, which is a staggering amount considering digital adoption has been slow previously.

In mid-April, H&M temporarily closed around 80 per cent of its stores worldwide. Today, only 3% of the company's 5000 shops (166 shops) still remain closed.

"Our recovery is going better than expected... With more full-price sales than expected and strict cost control, we returned to profit already in the third quarter," CEO Helena Helmersson said in a statement.

Already a member?

Sign in to read this article & enjoy the following:

  • Access to members-onnly content, events, and more
  • Connect with a global community of CEOs, Business Owners, and more.
  • Free Business Feature & Profile Listing
  • Post Unlimited Jobs & Hire Talent Effectively
  • Connect with Investors and Fundraise
  • Search through entire members, companies, and investors directory
  • and lots more!

Latest Jobs

Lead Backend Engineer

Popl

Los Angeles, CA, United States

Full Time

USD 100000 — USD 200000 yearly

Join Hive.co as our first Engineering Manager!

Hive

Kitchener, Canada, United States

Full Time

USD 130000 — USD 160000 yearly

Founding Engineer (Fullstack)

Medplum

San Francisco, United States

Full Time

USD 180000 — USD 200000 yearly

Full-Stack Developer

Hyper Online

San Francisco, United States

Full Time

Salary Undisclosed

Senior Product Manager, Employee Benefits

Newfront

San Francisco, United States

Full Time

USD 176000 — USD 220000 yearly

Scientific Project Manager

Actipulse Neuroscience

Mexico City, Mexico, United States

Full Time

USD 31000 — USD 38500 yearly

Technology Innovation Lead

Vendease

Lagos, Nigeria, United States

Full Time

USD 3000 — USD 5000 yearly

Growth and Sales Lead at Stealth Commerce Company

Terrasoft

Los Angeles, CA, United States

Full Time

USD 80000 — USD 200000 yearly

K-12 Sales Representative, Upper Midwest

Edpuzzle

San Francisco, United States

Full Time

USD 60000 — USD 75000 yearly

Data Science and Engineering Spring/Summer 2023 Internship

Dataherald

Los Angeles, CA, United States

Internship

USD 15 — USD 25 yearly

BEAMSTART is a hub for everything Startups, Entrepreneurship, and Innovation. Connect with a global community of people, and stay updated with the latest startup jobs, news, and discussions.

 
© 2016 - 2023 BEAMSTART. All Rights Reserved (Legal).