STOCKHOLM (dpa-AFX) - Swedish retailer Hennes & Mauritz AB or H&M Group (HNNMY.PK, HMRZF.PK, HEN.L) reported that its net sales for the first-quarter increased by 8 percent to 54.95 billion Swedish kronor from last year. In local currencies net sales increased by 5 percent. So far in March sales have been negatively affected mainly in Europe as a consequence of the continued spread of the coronavirus.
The company noted that sales development in the second half of the quarter was negatively impacted by the outbreak of the COVID-19 virus, particularly in China.
From 1 December 2019 to 23 January 2020 sales in China increased by 27 percent in local currency. However, demand then decreased significantly as a result of the rapid development of the virus and therefore H&M group's sales in China decreased by 24 percent in the quarter as a whole. At its peak, 334 of the group's 518 stores in China were closed in February.
Excluding China, Hong Kong, Singapore, Macau, Japan and Taiwan the H&M group's sales in the quarter increased by 7 percent in local currencies.
According to the company, all of the group's stores are temporarily closed in Italy since the past few days and during the weekend all stores were also closed temporarily in Poland, Spain, the Czech Republic, Bulgaria, Belgium, France and partly in Greece.
All of the group's stores in Austria, Luxembourg, Bosnia-Herzegovina, Slovenia and Kazakhstan are closing from Monday. The online store remains open.
In China sales have gradually started to recover as the situation in the country has improved.
Copyright RTT News/dpa-AFX
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