The chain will reduce the opening of new net stores. The company has outmaneuvered countless retailers globally, particularly department stores and specialty apparel chains, for years.
H&M has relied on new stores in new markets, with less emphasis on ecommerce. The store closings are the greatest in number in 20 years for the company, according to Bloomberg.
The company reported a 33% drop in its Q4 of 2017 profit along with a 2% drop in sales in the fiscal Q4, which ended in November 2017.
Sales in December and January are also expected to be modest.
The company plans to open 220 net stores in 2018 (390 new ones and 170 closings), which is well below last year’s 388.
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