Know about H&M’s performance in Q3 ended 31 August 2020!
While the net sales for the Swedish fast fashion retailer have fallen by 16 per cent in local currencies compared to what it was during the same quarter last year, its group recovery was better than expected.
Tight control over cost in addition to more full-price sales helped H&M to already turn to profit in Q3. The preliminary results show that the profit before tax is around US $ 230 million.
That’s not only double the forecast made, but also 8 times more than the average analyst prediction.
It’s also noteworthy that when the third quarter started in June, 900 of H&M’s stores were temporarily closed, but by the end of the quarter only 200 of retailer’s total 5,000 stores are shut temporarily. If reports are to be believed, the number has further come down to 142.
H&M will be releasing the full results of Q3 as well as the 9-month period (1 December 2019 to 31 August 2020) on 1 October 2020 (Thursday).
The final report will clearly show if it has managed to sell more of its unsold inventory – but for that, one has to wait till 1 October.
The fashion retailer did not share any numbers as far as it e-commerce sales in the third quarter were concerned. Notably, its e-commerce sales had risen by 32 per cent in Q2.
Stating more on the e-commerce performance, Nils Vinge, Director of Investor Relations, said that the retailer’s e-commerce is profitable and continues to perform strongly.
H&M is the second largest clothing retailer and generates revenue of US $ 25.191 billion.
Watch this space for more details!