H&M will not reduce prices on the background of a reduction in profits

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Swedish clothing retailer H&M reported a decrease in pre-tax profits for the period from June to August by 20% year-on-year to 4 billion 10 million kroons. Sales fell by 8% in the US, France, Italy and Belgium markets as a result of problems with the new logistics system in these countries, which increased H & M costs by approximately 400 million kroner. The growth of competition forced the company to begin reorganizing the chains of its stores and brands. However, on September 17, the company reported a 4%increase in sales in local currencies including VAT in June-August. H&M told investors that, despite the reduction of pre-tax profits, there was no need to further reduction in prices to eliminate unsold goods. Against this background, the company's shares rose by 10.28%.

The information and recommendations contained in this analytical document are published strictly for information purposes and are not considered as an offer to buy or sell the trading tools mentioned above and are not intended to motivate to perform certain transactions
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