Last week, the Swedish retailer H&M released its financial results for the third quarter of 2021 which shows that China is no longer amongst the clothing giant’s top ten sales markets.
GNTN writes that last year at the same time, the Asian nation ranked fifth on the sales list but this year that spot was occupied by the retailer’s home country of Sweden.
According to a transcript of the conference call, Chief Executive Officer Helena Helmersson described H&M’s China operations as a “complex situation” and declined to comment on the annual sales drop in the country in Q3.
Overall, however, H&M benefited greatly from most countries’ lifted covid-19 restrictions in the third quarter where a smaller price reduction and focus on costs also contributed to a result that beat analysts’ expectations.
H&M’s revenue increased by 14 percent in the quarter to SEK 55.6 billion compared to the same quarter last year. At the beginning of the quarter, about 180 stores were closed, and it dropped towards the end of the third quarter to 100 stores, the company writes.
At the same time, H&M saw an increase in its online sales of 22 percent. compared to last year.
“The pandemic and its consequences are not yet over and we are humbled by the many challenges in the world around us that affect our business, which calls for a high level of flexibility and drive,” Helena Helmersson said in a statement on the company’s website.