The textile sector is heading towards recovery. The Swedish fashion chain Hennes and Mauritz (H&M) presented this Thursday a net profit of 1,697 million Swedish crowns (167 million euros) in the first half of the fiscal year (December-May). A result that contrasts with the loss of 3,063 million crowns (302 million euros) registered a year earlier due to the effects derived from the coronavirus crisis in the sector.
The main rival of the Spanish distribution firm Inditex highlighted in its balance sheet that the restrictions promoted by the different countries for health reasons continue to affect the company, since up to 1,800 stores, 36% of the group’s total, remained closed in the worst case. time of the semester, although at the end of May that number had dropped to 140.
Operating profit was SEK 2,724 million (€ 269 million), compared to a loss of SEK 3,498 million (€ 345 million) a year ago. Meanwhile, net sales amounted to 86,569 million Swedish crowns (8,538 million euros), 12% more accounted for in local currencies.
In the second quarter (March-May), H&M earned 2,767 million crowns (273 million euros) net, when in the same period of 2020 it had lost 4,991 million Swedish crowns (492 million euros). The operating result went from a loss of 6,188 million crowns (610 million euros) to a profit of 3,852 million crowns (380 million euros).
Net sales amounted to 46,509 million crowns (4,587 million euros), 75% more in local currencies.
Increase of the online channel
In the same period, internet sales increased 40% more in local currencies. At the end of May, the volume of stored merchandise (“stock”) had fallen by 10% to 35,866 million crowns (3,537 million euros).
Net sales increased 25% in local currencies between June 1 and June 28. “The company’s financial position remains strong and the board of directors believes there are very good prospects for a cash dividend in the fall of this year,” the balance sheet states.
