Dull fashion: how much the largest fashion brands have lost due to the pandemic in 2020
'30.12.2020'
Source: Jana
The world's largest fashion manufacturers in 2020 suffered multimillion-dollar losses due to the coronavirus pandemic, reports Jana.
According to experts, by May, the net losses of the American brand Abercrombie & Fitch reached $ 244,2 million. The company's profit in the last quarter of the year was $ 485,4 million, down 34 percent from the same period in 2019.
Online sales of British fashion house Burberry fell 48,4 percent in the second quarter of the year, compared to the previous period. Its revenue was £ 257 million ($ 348 million). In addition, the luxury brand was forced to cut its staff by five percent, mainly affecting office workers in the UK.
US firm Guess also recorded a decline in revenue for the three-month period ending May 2, falling to $ 260 million from $ 536 million in the same period last year.
Swedish mass-market brand H&M reported a 57 percent drop in sales from March 1 to May 6. In this regard, it was decided to close 170 stores across Europe. In three spring months, the American sportswear manufacturer Nike, in turn, lost $ 790 million.
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Revenue for the French conglomerate Kering, which includes luxury brands Gucci, Saint Laurent and Bottega Veneta, fell to 3,2 billion euros in the first quarter, down 16,4 percent from the prior year period.
In the first half of 2020, large losses were also calculated in the conglomerate LVMH: its net profit decreased by 84 percent compared to the end of 2019.
In June, British singer and designer Victoria Beckham took out a £ 6,4 million ($ 7,9 million) loan to save her business. Over the past four years, the Beckham clothing brand has suffered losses of $ 52 million. In 2020, it approached bankruptcy amid the coronavirus pandemic.
