H&M sales have hit £5 billion in the first quarter of 2020, as the company moves to protect its profits from the Coronavirus outbreak.

The Swedish clothing giant announced that sales were up by eight per cent in in the three months from December to February, while net sales in local currencies were up by five per cent.

However, the company has seen negative impact on global sales development in the second half of the quarter due to the outbreak of the COVID-19 virus, particularly in China, where the outbreak began.

From 1 December 2019 to 23 January 2020 sales in China increased by 27 per cent, however demand decreased significantly as a result of the rapid development of the virus and therefore H&M group’s sales in China decreased by 24 per cent in the quarter as a whole.

In China sales have gradually started to recover as the situation in the country has improved.

So far in March sales have been negatively affected mainly in Europe as a consequence of the continued spread of the virus.

The company said that the “situation in every country is changing rapidly” following actions to close non-essential businesses by governments in Europe and across Asia. Online operations will remain open.

All of the group’s stores are temporarily closed in Italy since the past few days and during the weekend all stores were also closed temporarily in Poland, Spain, the Czech Republic, Bulgaria, Belgium, France and partly in Greece. All of the group’s stores in Austria, Luxembourg, Bosnia-Herzegovina, Slovenia and Kazakhstan are closing from Monday.

As statement from the group said: “The H&M group is working extensively to manage the COVID-19 situation, the highest priority being the safety of employees and customers.

“While the H&M group’s transformation work continues at full speed, all activities in the company are now being carefully evaluated - including from a cost and risk perspective - so as to be able to mitigate the negative effects associated with the virus as far as possible,” it concluded.

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