H&M temporarily shut around 1,050 of its around 5,000 stores due to the COVID-19 pandemic and government measures. The world’s second-biggest fashion retailer will report sales for its first quarter spanning the December-February on March 15. Its net sales are expected to drop by 28 per cent during the quarter from a year ago, says Refinitiv Smart Estimate. The brand is bracing for a loss in the period after the pandemic slashed 2020 profits by 88 per cent.

Its biggest rival Inditex, which owns the brand Zara, forecast a return to healthy sales as soon as lockdowns are lifted, as it reported a 70 per cent fall in profit for its fiscal year through January. The retailer expects all its shops to open by mid-April. Around 15 per cent of its stores remain temporarily closed.