The pandemic continues to weigh down H&M, slowing its recovery on the stock market

December 15, 2020 14:00

HM shares fall Stockholm exchange

Shares of Hennes & Mauritz AB (H&M) fell more than 3% on the Stockholm Stock Exchange after presenting results still heavily hurt by the pandemic:

  • Its local currency sales fell 10% in its fourth fiscal quarter
  • It fell 19% in the third quarter
  • Its turnover fell 50% in the second quarter

In the whole of the fiscal year (December-November) the fashion chain recorded a drop in sales of 18% year-on-year, to 187,025 million Swedish crowns (18,288 million euros), due to the impact of the mobility restrictions imposed to stop the spread of the coronavirus.

HM weekly CFD chart

Source: Admiral Markets MetaTrader 5. Weekly CFD H&M chart. Data range: from November 22, 2015 to December 15, 2020. Prepared on December 15, 2020 at 12:30 p.m. Keep in mind that past returns do not guarantee future returns.

Due to the impact of the pandemic, H&M has fallen about 8% on the stock market so far in 2020, although it was coming off a long-term downtrend. In the past five years it has lost 46% of its value and only closed the year 2019 positively, with an increase of 51%.

Another textile company that has presented results is Inditex, owner of Zara, which in the first nine months of its fiscal year (February-October) had a turnover of 28.9% less than a year earlier, although in the third quarter it managed to overcome the losses it had registered in the first six months. Its shares, like those of H&M, fell about 3% on the Madrid Stock Exchange.

 

Do you think H&M or Inditex will maintain this trend in the short term or do you think they will soon reactivate with the arrival of the Covid-19 vaccine? With Admiral Markets UK Ltd you can speculate on the movement of these companies' shares both up and down through Contracts for Difference, or CFDs. If you want to start you already have two options: open a free demo account with virtual money or open a real trading account by clicking on the following banner:

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