In the first quarter of its current fiscal FY2020/21, H&M Group plans to focus more on digital growth. The brand also aims to optimize its store count by closing 250 stores and elevating remaining stores, as well as more closely associating them with one of H&M’s other priorities: sustainability.

H&M’s sales in the first quarter of this fiscal declined 23 per cent in local currencies. During the fourth quarter of last fiscal, its pre-tax profits fell to SEK3.67 billion from SEK5.4 billion a year earlier. The gross margin fell to 52.1 per cent from 54 per cent and post-tax profit dropped to SEK2.485 billion from SEK4.212 billion.

The brand’s net sales dropped by 10 per cent in local currencies to SEK52.549 billion as a strong recovery at the start of the quarter was derailed by the imposition of further pandemic restrictions. Its full-year pretax profit fell to SEK2.05 billion from SEK17.4 billion. Post-tax profit for the year was SEK1.243 billion, down sharply from SEK13.443 billion a year earlier. The gross margin fell to 50 per cent from 52.6 per cent.