H & M Lost $74 Million In Mainland China, And Its Gross Profit Margin Fell To 47.6%

        On July 1, H & M group released the second quarter financial report of 2021. In the second quarter of 2021, sales of H & M group in mainland China decreased by 28% compared with the same period last year, and the loss reached 74 million US dollars.

        As early as March 31, H & M released the first quarter performance report of fiscal year 2021, which showed that in the three months ending February 28, H & M sales fell 21% year-on-year to SEK 40.06 billion, gross profit rate fell to 47.6%, and after tax loss was 1.07 billion SEK.

        It is reported that H & M has closed many stores in China. According to a conservative estimate, 250 stores will be closed in 2021, and 20 stores have closed in China by the end of May, according to H & M's chief executive. According to the fashion business news, H & M closed its store on Nanjing West Road in Shanghai.

        In addition to frequent shop closures, H & M has been fined for quality problems for several times before, and was fined three times in May alone.

        On May 31, Haines Morris (Shanghai) Commercial Co., Ltd., an affiliated company of H & M, was again subject to administrative punishment for "adulteration and adulteration in the production and sales of products, and the penalty was" to confiscate the illegal income of 1760.7 yuan, to impose a fine of 41832 yuan, to stop the illegal act, to order correction and to confiscate the illegal property ".

        On May 21, Hines Morris (Shanghai) Commercial Co., Ltd., an affiliated company of H & M, added a new punishment message. According to tianyancha app, the company produced products that did not meet the national, industrial and local standards for human health, personal and property safety, and was confiscated of 34500 yuan and fined 134300 yuan.

        On May 18, Shanghai Huangpu District market supervision and Administration Bureau released the information of administrative punishment. Haines Morris (Shanghai) Commercial Co., Ltd., an affiliated company of H & M, was ordered to make corrections because it did not indicate the product specifications, grades, and the names and contents of the main ingredients contained.

        Earlier, on February 3, H & M was fined more than 96000 yuan and confiscated more than 37000 yuan of illegal income, with a total amount of more than 133500 yuan.

        On January 25, due to the adulteration and adulteration of the products by the producers and sellers, the fake products were replaced by the real ones, the inferior ones were replaced by the high-quality ones, or the substandard products were passed off as qualified products. The illegal income was confiscated and the fine was 96492 yuan. The name of the administrative punishment decision-making organ was Putuo District market supervision and Administration Bureau.

        On January 20, H & M was "confiscated of 10250553 yuan of illegal income and fined of 30751659 yuan" by Shanghai Huangpu District Market Supervision Bureau for "false or misleading publicity of goods or services".