H&M has swung to its first loss in decades.
The world’s second-biggest fashion retailer, saw the pandemic pummel it to a steep second quarter loss.
The company said it was ramping up store closures as a result.
H&M, said it had increased price cuts in the third quarter to generate sales.
Chief Executive Helena Helmersson said: "Since there is an oversupply of spring products throughout the industry, and the market remains weakened, we expect markdowns in relation to sales to increase again in the third quarter.”
Pretax losses came in at $695 million in its second quarter, while H&M said sales so far in June were down 25%.
H&M said 7% of its more than 5,000 stores remained temporarily shut. It said it would speed up closures and open fewer new stores this year than previously planned.