H&M reported an 88% fall in profit for the year through November on Friday and warned the pandemic was still hitting sales at the world’s second-biggest fashion group.

The Swedish fashion retailer said its full-year pretax profit fell to 2.05 billion Swedish crowns ($245.29 million) from 17.4 billion, hurt by restrictions and lockdowns.

In its final quarter, profit fell to three .67 billion crowns from 5.40 billion, but expected, helped by large cost cuts. That beat the three .07 billion expected by analysts polled by Refinitiv.

H&M had already reported a tenth fall in sales for the fourth quarter.

“The ongoing restrictions, along side the various temporary store closures, will have a considerable negative impact on the primary quarter,” CEO Helena Helmersson said.

“However, it’s clear that when customers have opportunity to buy – online and in certain markets with lesser restrictions – they’re showing that the collections are appreciated,” she said during a statement.

Sales in December through Jan. 27, the primary two months of its half-moon , were down 23% in local currencies.

Up to a 3rd of H&M’s around 5,000 stores were temporarily closed the amount .

The company said thanks to uncertainty, its board would come later with a proposed date and level for resuming H&M’s dividend. H&M didn’t pay a dividend for 2019.


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