STOCKHOLM (Reuters) – Swedish group H&M reported stable sales for its final quarter on Friday, but below expectations, as the company struggles to attract customers amid a crisis linked to rising prices. Cost of life.
“Work to achieve the company’s target of 10% operating margin in 2024 is moving in the right direction. Profitability and inventory levels were prioritized during the quarter,” he said. H&M said in a statement.
The world’s second-largest fashion retailer said sales in Swedish krona, the most closely watched figure, in the three months from June to August were “stable” year-on-year, below a average growth of 5% forecast in a Reuters poll of analysts.
H&M’s net revenue rose 6 percent to 60.9 billion Swedish crowns (around 5.1 billion euros), lower than the 63.5 billion Swedish crowns forecast by analysts.
H&M has seen its sales increase in recent months as a result of cost reductions announced last year, but the brand remains facing strong competition from Inditex, owner of Zara, and Shein, distributor of ‘fast fashion’ founded in China.
On the Stockholm Stock Exchange, H&M shares fell 4% in early trading.
(Report by Marie Mannes, by Stéphanie Hamel, edited by Blandine Hénault)
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