High street fashion icon Hennes and Mauritz (H&M) said on Friday the coronavirus pandemic had slashed its 2020 net profit by 90 per cent, with about a third of its some 5,000 stores currently closed.

For its financial year to November, the company reported a net profit of 1.24 billion Swedish kronor (€120 million) as sales fell 20 per cent to 187 billion kronor.

“Our measures to mitigate the negative effects of ongoing restrictions and closures are continuing,” chief executive officer Helena Helmersson said in a statement. “Although the situation at the time of writing is highly challenging, the H&M group stands strong.”

Despite continued lockdowns and restrictions, H&M said it would not increase the number of outlets – 350 – targeted for closure in the current year. At the same time, it would open 100 other stores, as planned.

Despite continued lockdowns and restrictions, H&M said it would not increase the number of outlets – 350 – targeted for closure in the current year. At the same time, it would open 100 other stores, as planned

The business was especially hard hit in its second quarter, the height of the first wave of the pandemic, when up to 80 per cent of its outlets had to close, H&M said.

Among the worst affected markets, sales in France plunged 28 per cent, with Italy down 24 per cent, the United States 17 per cent and Britain 16 per cent. China and Germany did better, registering losses of just three per cent.

H&M said that conditions had worsened again in the later part of the year as a second wave of the pandemic swept through.

For the three months to November – its fourth quarter – sales tumbled 15 per cent to 52.55 kronor, with net profit down 41 per cent at 2.49 billion kronor.