You are here

H&M sees furloughed HQ staff returning to work in July

file7acexegaxmrxzkb64yy.jpg
Sweden's H&M expects the 2,500 furloughed staff at its headquarters in Stockholm to return to work in July, the world's second-largest fashion retailer said on Wednesday.

[STOCKHOLM] Sweden's H&M expects the 2,500 furloughed staff at its headquarters in Stockholm to return to work in July, the world's second-largest fashion retailer said on Wednesday.

"As it currently stands, we will not seek to extend the furlough period for our staff at the headquarters in Sweden to the July-October period," a H&M spokesperson said in a text message.

None of the furloughs at the headquarters would be cancelled before July, the spokesperson said.

Shares in H&M were up 4 per cent at 8.45am GMT, outperforming the wider market in Stockholm.

In March H&M said it was in talks to temporarily lay off tens of thousands of employees due to the Covid-19 epidemic but it has since been gradually reopening stores.

Some 1,500 of its around 5,000 stores remain temporarily closed, down from around 4,000 at the height of the closures.

Group sales have tumbled and H&M has warned it will make its first loss in decades in the March-May quarter.

In March 1 through May 6, local currency sales were down 57 per cent year-on-year.

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes