( New York, 18th June 2020 ) Affected by the epidemic, shopping malls in many countries are almost completely shut down due to the blockade, which has impacted the apparel retail market. The latest financial reports of global fast-fashion brands in 2020 have been released, but the performance has been tragic, especially The financial reports of well-known brands such as Guess, GAP, Zara and H&M are even more terrible.
Spanish clothing giant Inditex, the parent company of fast-fashion brand Zara, announced that in the first fiscal quarter as of the end of April, the loss reached 409 million euros (approximately RM 2 billion), which was the first loss since the listing in 2001. More than doubled analysts' expectations. Inditex has Massimo Dutti, Pull&Bear and other brands. For sustainable operation, it will change its strategy and permanently close up to 1,200 stores worldwide, equivalent to 16% of the total number of global stores. It will more actively switch to online sales and will invest 1 billion in the next three years. Euro investment in e-commerce business. These stores will be closed this year and next two years. About 100 stores in Zara, Massimo Dutti and Pull & Bear in North and South America will be affected, and more stores will be closed in Asia and Europe.
As for Gap, the largest apparel retailer in the United States, the first quarter ended May 2 had a loss of $932 million and a loss of $2.51 per share, reflecting the impact of the coronary disease pandemic that caused the temporary closure of stores in early March; the same period last year, the group Profited 227 million US dollars. The group disclosed that the overall revenue of the Gap brand fell 50% in the last quarter, Old Navy fell 42%, Banana Republic retreated 47%, and Athleta fell 8%.
In addition, the American fashion brand Guess reported a loss in the first quarter from February 1, 2020 to May 2, and the company's net income fell 51.5% year-on-year to US$260.3 million. The net loss was further increased from US$20.58 million in the same period last year. Expanded to 160 million US dollars.
All Guess market performances have declined. Among them, retail revenue in North America has fallen by 57.7%, sales in Europe and Asia have dropped by 49.3% and 52.6%, respectively. At present, about 677 of Guess’s 1141 directly-operated stores have reopened.
Guess also expects the decline to continue in the second quarter of this year.
In addition, the financial report released by Swedish H&M Group, the world's second largest clothing retailer, on June 15 showed that the second quarter sales as of the end of May fell by 50% to 28.66 billion SEK, but the decline was less than expected. Affected by the new crown epidemic, 80% of H&M's stores worldwide closed in mid-April. Starting from the end of April, currently, of all 5,058 stores, 900 stores are still closed, accounting for about 18% of the total.
**Info & Image are taken online
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