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H&M Reports a Weak Start to the Year as Sales Disappoint

Rafaela Lindeberg
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⚡ Quantum Brief
Swedish fast-fashion giant H&M reported weaker-than-expected first-quarter sales, missing analyst forecasts by nearly 2% as net sales dropped to 49.6 billion kronor ($5.3 billion) in local currencies. The decline reflects sluggish consumer spending and significant currency headwinds, with sales falling 1% year-over-year despite cost-cutting measures to offset revenue pressures. Operating profits exceeded estimates due to strict expense controls, providing a rare bright spot amid the disappointing top-line performance and broader retail downturn. March sales showed tentative recovery signs, with a projected 1% local-currency increase compared to the same month last year, hinting at potential stabilization. The results underscore ongoing challenges in the global fast-fashion sector, where inflation and shifting consumer habits continue to weigh on growth and profitability.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Swedish fast-fashion retailer Hennes & Mauritz AB’s first-quarter sales fell short of expectations in a period plagued by weak consumption and large currency effects.Net sales in local currencies slid 1% to 49.6 billion kronor ($5.3 billion), compared with forecasts of 50.46 billion kronor. Cost controls helped the company beat operating profit estimates, and H&M said sales in March are expected to increase by 1% in local currencies compared with the same month in the previous year.

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