The new coronavirus (COVID-19) pandemic has hit high street fashion icon H&M after it reported its net profit slashed by 90 per cent.

With about a third of its some 5,000 stores currently closed, the company reported a net profit of 1.24 billion Swedish kronor (Dhs532 million) for its financial year to November. Its sales fell 20 per cent to 187 billion kronor (Dhs82 billion).

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Its fourth-quarter sales tumbled 15 per cent to 52.55 billion kronor, with net profit down 41 per cent at 2.49 billion kronor.

Helena Helmerson, chief executive officer, said in a statement that the H&M group “stands strong” despite the situation being highly challenging.

H&M said their 350 outlets targeted for closure in the current year would remain. They are planning to open 100 other stores.

The clothing company was especially hard hit in its second quarter when 80 per cent of its outlets had to close.

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Markets in France were among the worst hit with sales plunging to 28 per cent. Italy registered a 24 per cent decrease in sales, United States at 17 per cent, and Britain at 16 percent.

Other markets in China and Germany only registered losses of just 3.0 percent. (ES)