Net sales

H&M announces 30% increase in net sales in India in the first half of 2021

Swedish fashion retailer H&M announced a 30% increase in net sales in India for the six-month period ended May 31, the retailer said in its global results release Thursday.

The financial year of the H&M Group runs from December 1 to November 30.

For the six-month period, net sales in India increased from ??645.86 crore the previous year for ??836.6 crore in the first half.

The retailer operates 50 stores nationwide, in addition to its own e-commerce channel as well as sales in the Myntra e-commerce marketplace.

Global sales increased in the first half of the year, compared to the same period a year ago.

“H&M group net sales in local currencies increased 12% in the first half of 2021 compared to the corresponding period last year,” he said in a statement.

“The pandemic has resulted in reduced footfall due to continued restrictions and store closings. At most, around 1,800 stores have been temporarily closed, or around 36% of the group’s total number of stores, ”he added.

In India, during the second quarter, i.e. from March 1 to May 31, ’21, the retailer reported a jump of more than 200% in its net sales to ??307 crore, albeit on a lower basis.

In the quarter of last year, the retailer reported a 70% year-on-year decline in net sales as India remained strictly closed for most of the period.

The retailer was quick to roll out more comfort and casual wear when the pandemic struck last year. This was also the case for his collection in India.

However, the nation’s second wave in April and May again saw non-essential retailers temporarily shutting down stores. Online deliveries of non-essential goods have also been restricted in some states.

Globally, online sales have continued to develop very well, although stores have been allowed to reopen, the company said.

During the six-month period, online sales increased by 47% and by 39% in the second quarter. Online sales now represent 38% of the group’s total sales.

“As more people are vaccinated and restrictions are relaxed, the world is gradually opening up and customers can visit our stores again. With the combination of highly regarded collections, rapid adaptation and further improvements, our recovery is strong. Despite continued restrictions, sales increased significantly from the previous year. The third quarter has started well and we are almost back to where we were before the pandemic, ”said Helena Helmersson, CEO of H&M Group.

Besides H&M, the retail group owns fashion brands such as COS, Monki, Weekday and Other Stories, among others.

As of May 31, the group had 4,913 stores worldwide, compared to 5,058 stores a year ago. It closed more than 90 H&M stores during the period.

Helmersson said the group’s “long-term” digital investments and increasingly integrated sales channels, as well as more efficient ways of working and customer focus, have been important during the pandemic. All parts of the business have contributed to the recovery, she said.

Helmersson said the retailer is seeing growing demand for value-for-money, long-lasting fashion.

In February, the company appointed Yanira Ramirez as head of national sales for India, a market where it has 50 stores.

In the meantime, the group will continue to close stores. For the whole of 2021, it is expected that around 350 stores will close and just over 100 new stores will open, resulting in a net decrease of around 250 stores. Most of the openings will be in growing markets, while the closures will mostly be in established markets, the retailer said in its results.

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