H&M Expects to Shrug off Coronavirus Losses

Fast fashion’s low costs and expansive selection overcomes all.

Fashion 
5,471 Hypes 6 Comments

H&M, like so many other fashion companies, posted significant losses during the early days of the coronavirus pandemic, but the ever-agile fast fashion behemoth is readying itself for a major comeback by year’s end. Like similarly-minded low-cost retailers, the fast fashion giant lost money but is planning a major revival before 2021.

With expected pre-tax profit of approximately 2 billion SEK (approximately $2.27 billion USD), H&M’s sales are still down when compared to a year prior (19 percent lower when converted to Sedish Kroner), but it’s a minimized decline compared to the expected results. Furthermore, the company began the quarter with 900 of its 5,000 stores closed; now only 200 store are temporarily closed.

“More full-price sales combined with strong cost control enabled the company to already turn to profit in the third quarter,” H&M said in a statement. “As a result of appreciated collections together with rapid and decisive actions, the H&M group’s recovery is better than expected.”

This snappy recovery is indicative of the fast fashion industry’s ability to swiftly adapt to the pandemic’s demands (accessible digital services) and provide comfortable, affordable clothing with broad appeal. Investors rallied around H&M in response to the predicted report — which will be published in full October 1 — similarly to the recent funding that bolstered the embattled Everlane’s coffers. By and large, shoppers still crave cheap clothing and trendy styles.

Meanwhile, J.Crew is recovering from its own tumultuous season.

Read Full Article
Text By
Source
H&m
Share this article
In this Article

What to Read Next

Neil Barrett Brings His Crisp Ethos to the Li-Ning ESSENCE
Footwear

Neil Barrett Brings His Crisp Ethos to the Li-Ning ESSENCE

Five collaborative colorways are releasing this fall.

Blood Orange Joins 박혜진 Park Hye Jin for New Track "CALL ME (Freestyle)"
Music

Blood Orange Joins 박혜진 Park Hye Jin for New Track "CALL ME (Freestyle)"

Accompanied by late-night visuals directed by Dev Hynes himself.

TAG Heuer Ushers in the Carrera's New Age With 160th Anniversary Collection
Watches

TAG Heuer Ushers in the Carrera's New Age With 160th Anniversary Collection

Four luxurious Carrera Chronographs inspired by heritage.

Liz Markus' T-Rexes To Invade Unit London's New Concept Art Gallery
Art

Liz Markus' T-Rexes To Invade Unit London's New Concept Art Gallery

The first exhibition at the gallery’s new space.

'Call of Duty: Warzone' Is Coming to Mobile
Gaming

'Call of Duty: Warzone' Is Coming to Mobile

Strongly suggested in a recent job listing.


Phillips to Auction Rare Yoshitomo Nara Painting in Hong Kong
Art

Phillips to Auction Rare Yoshitomo Nara Painting in Hong Kong

An early work titled ‘Hot House Doll, in the White Room III.’

8 Drops You Don't Want to Miss This Week
Fashion 

8 Drops You Don't Want to Miss This Week

Featuring Supreme, ASSC, COMME des GARÇONS CDG, DIME and Palace.

Action Bronson Drops "Mongolia" Featuring Meyhem Lauren and Hologram
Music

Action Bronson Drops "Mongolia" Featuring Meyhem Lauren and Hologram

With samples from ‘The Wire’ season two, David Caruso shout-outs and more.

Nike Presents Monochromatic Colin Kaepernick "True to 7" Jersey
Sports

Nike Presents Monochromatic Colin Kaepernick "True to 7" Jersey

Celebrating the four years that have passed since Kaepernick first took a knee on an NFL sideline.

SahBabii and Joji Launch POLLEN x Spotify Singles Series With New Song "Gates to the Sun"
Music

SahBabii and Joji Launch POLLEN x Spotify Singles Series With New Song "Gates to the Sun"

An unexpected but fitting collaboration for the “genre-less, quality first always” playlist.

More ▾
 
We got you covered. Don’t miss out on the latest news by signing up for our newsletters.

By subscribing, you agree to our Terms of Use and Privacy Policy.