H&M sees furloughed HQ staff returning to work in July

[STOCKHOLM] Sweden's H&M expects the 2,500 furloughed staff at its headquarters in Stockholm to return to work in July, the world's second-largest fashion retailer said on Wednesday.

"As it currently stands, we will not seek to extend the furlough period for our staff at the headquarters in Sweden to the July-October period," a H&M spokesperson said in a text message.

None of the furloughs at the headquarters would be cancelled before July, the spokesperson said.

Shares in H&M were up 4 per cent at 8.45am GMT, outperforming the wider market in Stockholm.

In March H&M said it was in talks to temporarily lay off tens of thousands of employees due to the Covid-19 epidemic but it has since been gradually reopening stores.

Some 1,500 of its around 5,000 stores remain temporarily closed, down from around 4,000 at the height of the closures.

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Group sales have tumbled and H&M has warned it will make its first loss in decades in the March-May quarter.

In March 1 through May 6, local currency sales were down 57 per cent year-on-year.

REUTERS