H&M Forecasts Loss and Considers Job Cuts Due to Virus
- Swedish retailer appreciates help, but says it won’t be enough
- Management pay cut 20% after March sales drop in half
Hennes & Mauritz AB said governments aren’t doing enough to help as three-quarters of the Swedish clothing retailer’s stores remain shut due to the coronavirus pandemic, making job cuts necessary.
Sales fell 46% in local currencies in March, the first month of H&M’s second quarter, which the fast-fashion maker said will be unprofitable. The company is considering ways to raise debt financing to improve its liquidity as it reduces working hours for tens of thousands of employees. The stock, which has lost a third of its value this year, gained 6% as of 9:10 a.m. in Stockholm.