H&M: sales disappoint as inventory level worries
(CercleFinance.com) - Swedish budget fashion retailer Hennes & Mauritz posted weak quarterly sales on Thursday, sending its shares down in Stockholm.
In the group's first quarter (from 1 December 2017 to 28 February 2018), sales including VAT were flat in local currencies compared to the first quarter the previous year.
When converted into Swedish kronor, sales fell by one percent to 53,5 billion Swedish kronor.
"This performance was all the more disappointing in that H&M has certainly carried out an aggressive promotional activity during this quarter to clean-up excess inventory," analysts at Bryan Garnier said.
H&M had 4,743 stores as of 28 February 2018, up from 4,393 stores a year ago.
After these figures were released, H&M shares were sinking 4.6% at 130 Swedish kronor, largely underperforming the STOXX Europe 600 Retail index, which is up 0.1%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
In the group's first quarter (from 1 December 2017 to 28 February 2018), sales including VAT were flat in local currencies compared to the first quarter the previous year.
When converted into Swedish kronor, sales fell by one percent to 53,5 billion Swedish kronor.
"This performance was all the more disappointing in that H&M has certainly carried out an aggressive promotional activity during this quarter to clean-up excess inventory," analysts at Bryan Garnier said.
H&M had 4,743 stores as of 28 February 2018, up from 4,393 stores a year ago.
After these figures were released, H&M shares were sinking 4.6% at 130 Swedish kronor, largely underperforming the STOXX Europe 600 Retail index, which is up 0.1%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.