hm profits down as bricks and mortar turnover falls
Last Updated : GMT 05:21:58
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 05:21:58
Arab Today, arab today

H&M profits down as bricks and mortar turnover falls

Arab Today, arab today

Arab Today, arab today H&M profits down as bricks and mortar turnover falls

H&M's online sales failed to offset a slowdown
Stockholm - AFP

Swedish fast fashion giant Hennes and Mauritz reported lower quarterly earnings Thursday as rising web sales failed to offset a slowdown in store turnover.

Net profit for the three months to end-August, the third quarter of the retailer's financial year, came in at 3.84 billion kronor (400 million euros, $470 million), a drop of 20 percent. Sales grew 4.6 percent to 51.23 billion kronor.

The results were in line with analysts' forecasts, but the retailer's shares dropped sharply in Stockholm in reaction.

"The fashion retail sector is growing and is in a period of extensive and rapid change as a result of ongoing digitalisation. The competitive landscape is being redrawn, new players are coming in and customers' behaviour and expectations are changing, with an ever greater share of sales taking place online," CEO Karl-Johan Persson said in a statement.

- Off target -

"This shift is clearly reflected in our online sales, which continue to develop very well. However, our growing online sales did not fully compensate for reduced footfall to stores in several of our established markets, which has resulted in our total sales development not reaching our targets so far this year," he said.

This meant that H&M entered the third quarter with an inventory level that was too high, he said.

An "aggressive" summer sale policy brought stocks down, and the autumn collection got off to a good start, he said, but sales slowed towards the end of September.

The group's online sales currently represent up to 30 percent in some of H&M's established markets, and Persson said online sales were expected to rise by at least 25 percent per year in the future.

Meanwhile, the retailer is continuing to invest in bricks-and-mortar operations, having opened its first physical stores in Kazakhstan, Colombia, Iceland and Vietnam, with its first Georgia outlet coming later in the year.

H&M said it will have opened a net 385 new stores across the world by the end of the year, after subtracting the around 90 stores that will have been closed.

The group comprises eight brands, H&M, COS, & Other Stories, Monki, Weekday, Cheap Monday, Arket and H&M Home.

- 'Disappointing' update -

H&M shares were down 5.1 percent in mid-session Stockholm stock exchange business, at 211 kronor, with analysts seeing several problems for the retailer.

"Overall, we think today's update will be seen as somewhat disappointing due to the cautious commentary around the fourth-quarter outlook," said Adam Tomlison, an analyst at Liberum, who recommended selling H&M stock while it was above 195 kronor.

H&M still had potential for global opportunities "but we believe there are significant structural challenges", the analyst said.

Global fashion was becoming ever more competitive with established multi-channel players and younger, high-growth pure online players "all sparring for market share", he said.

"We fear H&M lacks pricing power and the brand continues to resonate less strongly with consumers than it has previously," Tomlinson said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

hm profits down as bricks and mortar turnover falls hm profits down as bricks and mortar turnover falls

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

hm profits down as bricks and mortar turnover falls hm profits down as bricks and mortar turnover falls

 



Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today For the Variety of Interior Design Styles

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles

GMT 23:00 2016 Tuesday ,16 August

7 civilians dead as Yemen rocket hits Saudi

GMT 02:13 2017 Sunday ,01 October

April21st-May21st

GMT 05:40 2017 Thursday ,07 September

LAF Commander thanks citizens for their love and trust

GMT 18:20 2016 Thursday ,10 November

HRH The Prince of Wales visits Isa Cultural Centre

GMT 09:50 2017 Sunday ,10 December

China's consumer price inflation slows in November

GMT 05:43 2017 Sunday ,22 January

Etihad Airways to increase Maldives frequency

GMT 11:11 2017 Friday ,17 March

Baby karts launched

GMT 17:34 2016 Thursday ,22 September

Canada schools evacuated over ‘bogus’ bomb threats

GMT 12:16 2016 Friday ,30 December

After open-skies deal, a growth spurt

GMT 14:57 2016 Sunday ,25 September

Financial leaders to debate future policies at WCCRC

GMT 15:02 2017 Saturday ,07 January

Iraq forces near Tigris River in Mosul

GMT 16:55 2016 Sunday ,23 October

Top EU lawmaker tries to save Canada trade pact
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday