H&M Q1 sales and profit up but forecasts loss and job cuts due to Covid-19

For the first quarter to February 29, 2020, Hennes & Mauritz (H&M) group’s net sales increased by 8 percent to 54,948 million Swedish krona (5,433 million dollars), while in local currencies, net sales increased by 5 percent compared with the same quarter the previous year. The company added that profit after financial items more than doubled to 2,504 million Swedish krona (247.6 million dollars), while excluding the effects of IFRS 16, profit after financial items increased to 2,418 million Swedish krona (239 million dollars). The group’s profit after tax increased to 1,928 million Swedish krona (190.4 million dollars), corresponding to 1.16 Swedish krona (11 cents) per share, while excluding the effects of IFRS 16 profit after tax increased to 1,862 million Swedish krona (184 million dollars). However, as a result of the rapid global spread of the Covid-19 virus, H&M said, sales have decreased significantly.