Friday, March 31, 2017

Fast-fashion chain plans operational changes following disappointing quarter

Excess inventory and markdowns took their toll on H&M’s first fiscal quarter.
For the period spanning December 1, 2016 - February 28, 2017, H&M’s first-quarter pretax profit fell 3.6% to 3.21 billion kronor ($362 million), compared with an average estimate of 3.03 billion kronor. H&M blamed the decline on lower than expected sales growth, as well as higher mark-downs.
While H&M’s group sales increased 7%, this “was below our plan,” said Karl-Johan Persson, the company’s CEO.. . . more

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