BEAMSTART Logo

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

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


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.

ABOUT THE AUTHOR

Carl Adrian

Partnerships & Content Coordinator at BEAMSTART

Based in Singapore

Works at BEAMSTART

ALSO MENTIONED IN THIS POST

H&M

We offer fashion and quality at the best price in a more sustainable way

Industry:

Opportunities:


Have a company of your own? Create a company profile today and easily find customers, raise funds, or hire talent.

BEAMSTART is a Global Community and News Portal for Entrepreneurship. We cover the latest news and bring together a global network of CEOs/founders, Investors, Business Leaders, and Professionals.

 

Download the Community App

Connect with the BEAMSTART Entrepreneurship Community from the palm of your hands. Connect with CEOs/Founders, Investors, Business Leaders, and Professionals. Download below to instantly form partnerships and discover opportunities:

PlayStore ButtonAppStore Button

© 2016 - 2021 BEAMSTART. All Rights Reserved (Legal).