H&M intends to shut hundreds of Fashion stores worldwide in 2021 as the Coronavirus situation drives more consumers online, the world’s second-largest clothing retailer stated on Thursday, after reporting a smaller sized than anticipated drop in third-quarter earnings.
H&M intends to cut the number of stores by approximately 250 in 2021, about 5% of its present network. The fashion chain has 16 shops in the Republic of Ireland.
H&M has been shutting a lot more stores as well as opening fewer over the past number of years as it adapts to the online shift that is driving even more competitors.
The company also stated sales had actually improved in September.
Chief executive Helena Helmersson stated: “Although the obstacles are much from over, we believe that the worst is behind us and we are well put ahead out of the dilemma stronger.”
Competing fashion retail groups have actually also seen a recuperation, with market leader Inditex, the owner of Zara, reporting a return to profit in its May-July quarter.
“On the whole, Q3 is a better quarter than expected as well as we believe H&M continued to handle well what they might directly influence,” analysts at JPM stated in a note.
H&M claimed its September sales were down 5% year-on-year in regional money after they fell 19% in the 3 months with August