Fashion giant H&M predicts summer sales rebound after profits fall

The Sun

2 days ago

H&M yesterday posted a fall in profits which was smaller than feared — and it now predicts a sales rebound despite heavy discounting in the fashion industry.
Operating profits at the Swedish giant fell to £455million for the three months to the end of May.
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Analysts had expected a bigger dip, and the news helped H&M's shares jump seven per cent in Stockholm yesterday morning.
It came despite a slightly worse-than-forecast performance for sales, which edged just one per cent higher in the quarter.
H&M, the world's second-largest listed retailer, shut 153 stores in the year to May 31, leaving it with 4,166 globally. With the closures stripped out, it said sales rose by three per cent.
The clothes retailer now expects a three per cent sales jump this month, an improvement from the six per cent drop seen this time last year.
H&M said earnings were impacted by the higher costs of clothing due to a stronger dollar, as well as giving 'customers even more value for money'.
It is keeping a keen eye on changes and restrictions in global trade. Boss Daniel Erver said: 'In uncertain times, we monitor developments closely.
'Our plan, with its focus on the product offering, the shopping experience and the H&M brand, is confirmed by the progress we see in key parts of the business.'
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