Home Business H&M Sales Miss Estimates But Retailer Signals a Better Autumn

H&M Sales Miss Estimates But Retailer Signals a Better Autumn

2 min read
Comments Off on H&M Sales Miss Estimates But Retailer Signals a Better Autumn


Article content

Hennes & Mauritz AB’s sales just missed analyst estimates as households across Europe are struggling with a cost-of-living crisis amid soaring prices for everything from energy to food. 

Article content

Sales in local currencies dropped 4% in the three months through August, the firm said Thursday in a statement. Analysts had expected a drop of 1.4%. 

The company, one of the world’s biggest fashion retailers, had almost recovered from the Covid 19-pandemic when Russia invaded Ukraine, and is now struggling with soaring inflation and a more pessimistic outlook for the broader economy. In June, H&M said it would take a financial hit of 2-billion kronor for closing its shops and exiting Russia. 

Sales were off to a bad start in the quarter, but saw some improvement because of higher interest in its autumn collections than in the prior year. Total sales came in at 57.45 billion kronor ($5.36 billion). 

The drop in sales is a contrast to Zara-owner Inditex SA, which on Wednesday reported a 25% jump in sales for the first half and a higher profit than expected after increasing prices. H&M has said it seeks to strengthen its market position by not raising prices by the same rate as its competitors. 

The stock has fallen 37% year-to-date and currently trades near its coronavirus-related lows of the spring 2020. That’s when the firm had as much as 80% of its store network closed.


Source link

Load More Related Articles
Load More By 
Load More In Business
Comments are closed.

Check Also

When is the Right Time of Year to Transport Your Vehicle?

Transporting a vehicle can be a stressful experience, especially if you are unsure about t…