STOCKHOLM, Sept 30 — H&M today reported profits exceeding pre-pandemic levels in the third quarter, but sales sank in China, a key market where the Swedish clothing giant has faced a boycott.
Once its third biggest market, China is no longer among the 10 most important regions for H&M sales, according to the company’s quarterly report.
Hennes & Mauritz has faced an angry backlash in China since March after it announced it would stop sourcing cotton from Xinjiang, the far west region where activists say ethnic Uighurs are subjected to forced labour.
The company declined to say more about its woes in China.
“The situation is still complex, we won’t be able to answer more questions on that,” Helena Helmersson, the chief executive of Hennes & Mauritz, said in a teleconference.
H&M posted a net profit of 4.7 billion kronor (RM2.2 billion) in the June to August period, nearly triple from the same period last year and well above its third quarter performance in 2019.
While sales rose nine per cent to 55.6 billion kronor, they remained below pre-pandemic levels.
“The H&M group’s increase in profit shows that the strong recovery is continuing — despite sales being partly affected by restrictions and delays associated with the pandemic,” Helmersson said in the earnings statement. — AFP
