H&M Closes 70% Of Its Stores

The rapid spread of COVID-19 has been affecting companies and brands all over the world and the extraordinary public measures, taken almost everywhere to slow down the spread of the virus, have caused an unfortunate situation for people, businesses and communities alike.

Amongst them, the H&M Group has announced the closure of 3,441 of the group’s 5,062 stores, a move that has had a significant negative impact on sales so far in March. Stores across the UK, US and Germany, had been temporarily closed last week, while online sales in around 50 markets are still open.

“Dialogue about temporary layoffs has been initiated in several markets and will be followed by further temporary layoffs in other markets that are impacted by the corona situation,” said the group in a statement. 

“Globally, this is likely to affect tens of thousands of employees in all parts of the business, although it is not currently possible to specify the exact number. The company is also reviewing the potential need to terminate employment due to the negative impact of the corona situation on the business,” the statement read.

As it stands, full information about the expected economic effects on the current quarter will only be provided on April 3rd. 

“Since we on the board of directors presented our original dividend proposal, the market situation has changed drastically. In the light of the current situation and the uncertainty about market developments, the board has today decided to withdraw its earlier dividend proposal of SEK 9.75 per share, approximately SEK 16 billion in total, and is instead proposing to the 2020 annual general meeting that no dividend is paid,” explained Stefan Persson, chairman of the board.

“I am convinced that this is the best decision in this situation to further strengthen the company’s already strong financial position and thereby secure our freedom of action going forward,” he concluded.

Adding to this, CEO Helena Helmersson explained: “We are doing everything in our power in the H&M group to manage the situation related to the coronavirus. The rapid spread of COVID-19 has been affecting companies and brands all over the world and the extraordinary public measures, taken almost everywhere to slow down the spread of the virus, have caused an unfortunate situation for people, businesses and communities alike.

SHARE
  • Facebook
  • Twitter
  • Pinterest
SIMILAR ARTICLES
Massimo Alba: The Purist of Slow Fashion
By Elisa Carassai
Remember the fable of the ant and the cicada? Let’s use...
By Elisa Carassai
Remember the fable of the ant and the cicada? Let’s use that fable as a comparison for the fashion world. While there are many designers nowadays thriving on the glitz and glam of social media and its fast-paced tempo, some others instead, prefer to...
Remember the fable of the ant and the cicada? Let’s use that fable as a comparison for the fashion world. While there are many designers nowadays thriving on the glitz and glam of social media and its fast-paced tempo, some others instead, prefer to conduct their businesses in a rather tranquil way, silently working their way up the ladder in order to...
The Best Beauty Apps For Some Home Pampering
By Alice Ierace
As the world continues its fight against COVID-19, the...
By Alice Ierace
As the world continues its fight against COVID-19, the days spent in self-isolation seem to get longer and longer. Amongst all the Instagram lives, free workout videos and the constant baking, we mustn’t forget to take care of our beauty and wellbeing....
As the world continues its fight against COVID-19, the days spent in self-isolation seem to get longer and longer. Amongst all the Instagram lives, free workout videos and the constant baking, we mustn’t forget to take care of our beauty and wellbeing. Luckily, we are surrounded by a multitude of apps and, in the past couple of years, the beauty world...
Pitti Announces New Calendar
By Elisa Carassai
After last week's previous announcements which declared...
By Elisa Carassai
By Elisa Carassai
After last week's previous announcements which declared the postponement of Milano Moda Uomo and the Paris shows to September, the Pitti Group also divulged the change of dates of their upcoming fairs and events.   The majority of the fairs will be...
After last week's previous announcements which declared the postponement of Milano Moda Uomo and the Paris shows to September, the Pitti Group also divulged the change of dates of their upcoming fairs and events.   The majority of the fairs will be hosted in September (the 98th edition of the show will be hosted from the 2nd to the 4th of...
Huda Kattan Pledges $100.000 in Support of Struggling Make-up Artists
By Alice Ierace
Beauty icon, entrepreneur and founder of Huda Beauty, Huda...
By Alice Ierace
Beauty icon, entrepreneur and founder of Huda Beauty, Huda Kattan, has pledged to donate $100,000 to support freelance make-up artists who are struggling during the COVID-19 crisis.   In a raw and emotional Instagram video, she explained: “When...
Beauty icon, entrepreneur and founder of Huda Beauty, Huda Kattan, has pledged to donate $100,000 to support freelance make-up artists who are struggling during the COVID-19 crisis.   In a raw and emotional Instagram video, she explained: “When coronavirus first hit, I think everyone was scared about like ‘how can I protect my loved ones?’ And...
L'Oréal Acquires the Mugler Brands and Azzaro Fragrances
By Alice Ierace
Beauty brand L’Oréal has announced that, after obtaining the necessary authorisations from the...
By Alice Ierace
Beauty brand L’Oréal has announced that, after obtaining the necessary authorisations from the relevant authorities, it has finalised the acquisition of the Mugler brands and Azzaro fragrances from Clarins Group.As it stands, the companies include Mugler, Thierry Mugler (Fashion), Clarins...
Beauty brand L’Oréal has announced that, after obtaining the necessary authorisations from the relevant authorities, it has finalised the acquisition of the Mugler brands and Azzaro fragrances from Clarins Group.As it stands, the companies include Mugler, Thierry Mugler (Fashion), Clarins Fragrance Group (CFG), CFG France, Cosmeurop and CFG UK – activities that, in 2018, represented...
Marco Zanini’s Quest for Independence
By Elisa Carassai
Marco Zanini is no rookie in the fashion system. With a...
By Elisa Carassai
Marco Zanini is no rookie in the fashion system. With a background that counts experiences at Versace, Halston, Schiaparelli, Rochas and Santoni, the designer has, over time, developed a cult following his appointment at Rochas. It comes however, as a...
Marco Zanini is no rookie in the fashion system. With a background that counts experiences at Versace, Halston, Schiaparelli, Rochas and Santoni, the designer has, over time, developed a cult following his appointment at Rochas. It comes however, as a surprise, to why an experienced designer like Zanini would want to take a ‘gamble’ on himself and...
On a Hunt For Quality
By Frédéric Martin-Bernard
To kill time in this period of confinement, I set out to stitch the button on a coat I had only...
By Frédéric Martin-Bernard
By Frédéric Martin-Bernard
To kill time in this period of confinement, I set out to stitch the button on a coat I had only worn 3 or 4 times. Then, I remembered that another button was detached from a jacket that was not much older; that the hem of a pair of trousers was beginning to unravel; that the lining of a coat was...
To kill time in this period of confinement, I set out to stitch the button on a coat I had only worn 3 or 4 times. Then, I remembered that another button was detached from a jacket that was not much older; that the hem of a pair of trousers was beginning to unravel; that the lining of a coat was loose by a few centimetres. That several parts of my dressing room were in need of small repairs...
Upcoming Milan and Paris Shows Cancelled
By Alice Ierace
In light of the spread of the Covid-19 epidemic worldwide, Camera Nazionale Della Moda Italiana...
By Alice Ierace
In light of the spread of the Covid-19 epidemic worldwide, Camera Nazionale Della Moda Italiana has announced that the Milano Moda Uomo fashion shows and presentations, scheduled June 19th to June 23rd 2020, will now take place during Milano Moda Donna edition in September 2020 instead. “We are...
In light of the spread of the Covid-19 epidemic worldwide, Camera Nazionale Della Moda Italiana has announced that the Milano Moda Uomo fashion shows and presentations, scheduled June 19th to June 23rd 2020, will now take place during Milano Moda Donna edition in September 2020 instead. “We are working on new digital formats and new ways of meeting to create, in the days provided by Milano Moda...