#Retail & Brands

2020-05-07

The H&M group gives a brief financial update on the ongoing Covid-19 situation

In view of the current situation the H&M group considers it appropriate to provide a brief financial update. The safety of employees and customers is the H&M group’s highest priority. Based on decisions by authorities and local market conditions, around 80 percent of the group’s stores have been closed since mid-March. From the end of April onwards the H&M group started gradually reopening stores in a number of markets.

Reopenings in each market are in line with local restrictions and rules on social distancing. In those markets that have begun to open up, trade in the stores has initially been muted. At present 3,050 stores, representing 60 percent of the group’s 5,061 stores, are still temporarily closed.

The H&M group’s total sales during the period 1 March – 6 May this year decreased by 57 percent in local currencies compared with the same period in 2019. Online sales, which are open in 46 of the company’s 51 online markets, increased by 32 percent in the same period.

Sales development in some of H&M group markets during March 1 – May 6, in percent

To offset the negative sales development a range of rapid and forceful measures are being implemented in the areas of purchasing, investments, rents, staffing and financing. As at 30 April the stock-in-trade amounted to just above BSEK 41 (40).

Costs for markdowns are expected to decrease in absolute figures in the second quarter compared with the second quarter of 2019, but since sales will be significantly lower the markdowns are expected to have a negative effect on the gross margin of 2 – 4 percentage points. The assessment based on current information is still that operating expenses excluding depreciation and amortisation will be reduced by approximately 20-25 percent in the second quarter compared with the corresponding quarter 2019.

As communicated previously, the second quarter will be loss-making since the measures implemented will not compensate for the substantial drop in sales.

The H&M group’s liquidity is good. As at 30 April cash and cash equivalents plus unutilised credit facilities totalled BSEK 23,8. The group’s work is focused on ensuring financial flexibility and freedom of action on the best possible terms in a challenging market where business opportunities are also arising. The group is therefore working to secure additional credit facilities in parallel.

“Production is a product”

From technical textiles and AI-driven robotics to the limitations of textile circularity: Professor Dr Thomas Gries looks back on more than two decades of development at ITA Aachen. In the interview, he explains why production technology remains a decisive success factor, discusses international collaborations and innovation ecosystems, and shares his views on the transformation of production landscapes and the challenges facing an increasingly regulated industry.

“We need to move away from the price trap and return to a value-driven mindset.”

With its new Textile Innovation Center, KARL MAYER is sending a strong signal for innovation, collaboration, and the future of textile applications. In this interview, Karl Josef Mayer discusses new opportunities in warp knitting, the processing of staple fibres, recycling, the changing role of machinery manufacturers, and why the textile industry must once again focus more strongly on the value of textiles. by Oliver Schmidt

“Innovation, resilience and international experience remain the great strengths of the Swiss textile machinery industry”

Geopolitical uncertainty, growing competitive pressure from China, new free trade agreements and the shift towards a circular economy are currently reshaping the global textile industry. In this interview, Cornelia Buchwalder discusses the current mood within the Swiss textile machinery sector, the industry’s distinctive innovative strength, new market opportunities in India and Asia, and the technological trends that could shape the upcoming trade fair cycle leading up to ITMA 2027.

Recover™ secures multi-year recycled cotton agreement with H&M

Recover™ has signed a multi-year agreement with H&M to support the integration of its recycled cotton fiber, RCotton, for use in H&M’s products. Since early 2024, H&M and Recover™ have collaborated on product development, which now enables scaled commercial introduction of Recover™ mechanically recycled cotton into H&M’s collections.

GORE-TEX® KIDSWEAR launches innovative membership scheme for kids’ jackets

With its revolutionary new membership model, GORE-TEX® Kidswear now offers families a simple, flexible and sustainable way of kitting out their children in top-quality jackets. It is aimed at the parents of children aged between five and ten and kicks off with a choice of functional winter jackets.

Mario Jorge Machado re-elected President of EURATEX

The EURATEX General Assembly has re-elected Mario Jorge Machado as President of EURATEX, renewing its confidence in his leadership at a crucial moment for the European textile and clothing industry. The sector is facing rising costs, global competitive pressure and an increasingly challenging transition towards sustainability and digitalisation.

ITM 2026 makes happy participants with its international and qualified visitor profile

ITM 2026 International Textile Machinery Exhibition, one of the most prestigious meeting points of the textile machinery sector, attracted attention in its first three days, particularly with its diverse international visitor numbers. Industry professionals from all over the world had the opportunity to closely examine the latest technology machines and solutions displayed in operation. Thousands of visitors from approximately 100 countries, primarily Egypt, Pakistan, India, Uzbekistan, Syria, Turkmenistan, Tajikistan, Morocco, Algeria, and Tunisia, met at the Tüyap Fair and Congress Center for new investment and cooperation opportunities.

KARL MAYER presents a textile TEXTRONIC® innovation at ITM 2026

With highly efficient machines and continuous textile innovations, KARL MAYER underscores its role as a reliable partner for discerning top-tier customers. Just in time for ITM 2026 in Istanbul, the industry leader is introducing a true innovation: an eyelash lace with its characteristic fringed look – combined with a previously unattainable 4-way stretch. While the established fabric could until now only be produced as rigid version or with one-dimensional stretch, the new elasticity in both dimensions expands the possibilities for cross-band panel fabrics.