H&M swings to loss, affirms commitment to China market

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Low-cost fashion brand Hennes & Mauritz AB on Wednesday reported an expected loss in the first quarter. Meanwhile, the pandemic-hit Swedish company said it was committed to remaining in the Chinese market despite facing a boycott there because of its views of alleged use of forced labour to produce cotton in the country's western region of Xinjiang.

despite facing a boycott there because of its views of alleged use of forced labour to produce cotton in the country's western region of Xinjiang.

Sales decreased to 40.1 billion kronor from 54.9 billion as the company said that the resurgence of the COVID-19 pandemic had hit the company badly, leading to the temporary closure of up to 1,800 stores, or some 36% of all of its stores worldwide, during the quarter.

The company said in a separate statement that "China is a very important market to us and our long-term commitment to the country remains strong" and that Hennes & Mauritz was doing all it can to manage challenges it was facing in China.

 

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Taiwan great country 1. China 4.

It was already in huge losses and closing stores in China. Have you seen the quality of their clothes? Lol

'faced a backlash in China over the company's continued ethical decision not to use cotton sourced from the Xinjiang region and allegedly produced by forced labour including minority groups such as the Uyghurs.' BoycottChina

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