H&M wants to save relations with China after boycott – E24

Hennes & Mauritz has presented quarterly results showing a loss in the billions, and there was tension ahead of time over whether the company will discuss the situation in China.

The state-controlled media in China has launched a campaign against H&M and several other high profile companies. They have called on the Chinese to boycott companies. The background is criticism of China’s treatment of the Uighur Muslim minority in the Xinjiang region.

– We are dedicated to regaining the trust of customers, colleagues and business partners in China, H&M writes in an update.

H&M writes that they do their best to handle the “ongoing challenges” and mark the way forward. The company writes that China is a very important market for them and that they will continue to have strong obligations to the country in the future. H&M has been present in China for more than 30 years.

Accusations of human rights violations

Nike, Adidas, Burberry, Zara and New Balance have also been heavily criticized by the Communist Party-controlled Global Times newspaper.

The criticism comes a few days after the EU, the UK, Canada and the US introduced sanctions against Chinese officials who have allegedly been involved in human rights violations against Uighurs.

Norway joins the EU sanctions against people and companies in China accused of human rights violations.

However, the Norwegian Confederation of Business and Industries (NHO) believes that it is currently unclear whether the Norwegian sanctions against China will have consequences for Norwegian companies.

– This is not unexpected, as Norway tends to follow the EU in such sanctions cases. It is too early to say whether this will have consequences for Norwegian companies, NHO’s international director Tore Myhre said in a statement to NTB.

Both human rights organizations and several Western countries have accused China of detaining more than a million people in re-education camps in Xinjiang. The US government believes that the Chinese authorities are behind the genocide against Uighurs in the region.

The Chinese government has repeatedly denied it, instead claiming that Xinjiang residents receive job training that helps counter Islamic extremism.

Loss of billions

H&M ended with a loss of SEK 1.07 billion in the first accounting quarter of 2021, according to the quarterly report released at the morning branch on Wednesday. The amount corresponds to a loss of NOK 1,050 million.

In the corresponding period last year, the result ended at more than 1.9 billion SEK.

Gross profit fell from SEK 28 to 19 billion, while operating profit fell to minus SEK 1.1 billion from SEK 2.7 billion.

Net sales ended at SEK 40.06 billion in the period, down from SEK 54.9 billion in the same period last year.

H&M operates with deviated years, which means that the figures apply to the December-February period.

In Norway, sales fell to SEK 947 million during the period, corresponding to NOK 926 million. That’s less than 1.17 billion SEK at the same time last year. In Norwegian kroner, the decrease was 12 percent.