H&M Group agrees new £861.5m credit line
The H&M group has signed a new 12 months €980 million (£861.5m) revolving credit facility to strengthen the business during the ongoing global COVID-19 situation.
The group has also been granted a 6 months extension option "in order to further strengthen its liquidity buffer and financial flexibility".
The new 12-month facility comes in addition to an undrawn €700 million revolving credit facility signed in 2017, maturing 2024.
"The H&M group’s liquidity remains good. The group is continuing its work to set up a combination of different financing solutions," the statement read.
H&M Group’s net sales increased by 8% to 54,948m Swedish krona in the first quarter ending 29 February 2020, while gross profit increased by 10% to 28,034m krona.
In local currencies, net sales increased by 5% compared with the same quarter the previous year, and online sales increased by 48% in SEK and 44% in local currencies.
In March 2020, H&M confirmed it is mulling the possibility of laying off thousands of workers, as the business suffers revenue setbacks amid the global health crisis.
As at 31 March, a total of 3,778 out of 5,065 stores were closed.