Fashion retailer Hennes & Mauritz has reported a 57% year over year drop in group sales in the March 1 to May 6 period resulting from store closures that have been mandated as part of the COVID-19 pandemic. That’s included a 71.0% slide in sales in the U.S. 

The firm has stated that it has taken “rapid and forceful measures” including in purchasing to address the shortfall. A widespread downturn in the apparel industry can already be seen in a 30.3% year over year slump in apparel exports from China as outlined in Panjiva’s research of May 7. 

Panjiva’s data shows that while U.S. seaborne imports linked to H+M were slashed by 16.2% year over year in March they actually increased by 1.0% in April. The decrease in March was down to a 37.0% drop in shipments from China alongside a 76.0% slump in shipments from Europe. In April meanwhile imports from China, Bangladesh and Europe all fell but imports from India and elsewhere rose by 26.3%. The firm therefore faces the risk of a significant inventory buildup if imports don’t soon fall significantly.

Chart segments U.S. seaborne imports linked to H&M by origin. Source: Panjiva

By contrast, other retailers have continued to slash their imports. Imports linked to Fast Retailing’s Uniqlo dropped by 43.7% year over year in April after a 26.8% slide in March reverse a prolonged period of growth. 

Discount retailer Primark meanwhile has been in a downturn since Q4, with the exception of February, with imports associated with the firm having dropped by 36.9% year over year in April after an 18.3% slide in March.

Chart segments U.S. seaborne imports by consignee. Source: Panjiva