H&M See Further Discounts Amid Weak Sales
The Swedish fashion giant H&M said profits fell 61% in the three months to the end of February to 1.26bn Swedish crowns (£108m).
The company, whose other outlets include fashion mid-market & Other Stories and Cos, warned last month of weaker demand in some stores.
Earlier this month it warned sales had fallen for the second quarter in a row.
It said higher levels of stock would mean greater price mark downs in the next three months.
H&M employs 171,000 people worldwide in its 4,700 stores.
It is present in 69 countries, with the US, Germany and the UK its top three markets by number of stores.
This year it is planning to open 220 new stores, most will be H&M stores, but 90 will be its newer spin-offs including & Other Stories, Cos and Monki.
The company said stock levels rose by 7% in the quarter, compared with last year, partly thanks to its continuing expansion, but also because of weak sales in the previous quarter.
H&M said that rise was higher than planned, and would mean “increased markdowns” in the second quarter of 2018 compared with last year.
H&M said in its statement it expected to return to growth in sales and profits: “We take a long-term view that, together with our knowledge and experience enable us to navigate through times such as this… back to healthy growth in both sales and profitability.”
Courtesy : BBC News
Photo : The Morning Bulletin
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