H&M India sales fall 74% during March-May quarter, Retail News, ET Retail

MUMBAI: Swedish quick-style retailer Hennes & Mauritz (H&M) documented a seventy four% decline in profits in India for the quarter ended May well 2020, as most of the shops remained shut for practically two months in the quarter.

The world’s next-most significant apparel organization, which follows a December-November economical 12 months, documented profits of Rs ninety crore in the next quarter. For the duration of the 6-thirty day period period of time ended May well, it clocked Rs 602 crore, a 19% drop compared to a 12 months back.

“There have been some confined disruptions in the supply chain significantly Bangladesh and India, these are now settled, so we never count on a massive backlog into the third quarter,” stated H&M’s main economical officer Adam Karlsson in an traders phone.

Globally, the group’s internet profits declined fifty% as shops had been quickly shut in lots of marketplaces. In truth, in mid April all around eighty% of the group’s shops had been quickly shut. The Stockholm-primarily based H&M has opened a retail store a thirty day period in India on average so considerably given that its entry in India in Oct 2015, using the overall depend to forty eight at existing.

Revenue of the Rs1.seven lakh crore arranged apparel retail sector is envisioned to drop 30-35% in the course of the fiscal thanks to momentary retail store closures, limited mobility and small cash flow visibility for shoppers, stated a recent report by Crisil that analysed sixty apparel vendors, symbolizing a third of sector’s profits.