You cannot see this page without javascript.

By Anna Ringstrom and Helena Soderpalm

STOCKHOLM, March 27 (Reuters) - H&M on Tuesday warned of further prices cuts to shift unsold clothes after the Swedish fashion retailer reported a 61 percent dive in first-quarter profit that knocked its shares.

The world's second largest clothes retailer said it would be forced into more discounting after seeing a bigger-than-expected 7 percent increase in inventories.

H&M shares were down 6.4 percent to 13-year lows at 1000 GMT.

The shares have fallen in recent years amid slowing sales hurt partly by shoppers moving online.

The company noted online sales rose by approximately 20 percent year on year.

"2018 is a transitional year for the H&M group, as we accelerate our transformation so that we can take advantage of the opportunities generated by rapid digitalisation," Chief Executive Karl-Johan Persson said.

Pretax profit for the three months through February fell to 1.26 billion crowns ($154 million), just short of the 1.29 billion expected by analysts in a Reuters poll.

Net profit of 1.37 billion crowns was boosted by a one-off positive tax income of 399 million crowns related to U.S. tax reform.

The company had warned already in February that markdowns due to weak demand in its main H&M brand stores would hit earnings, and this month said quarterly sales had fallen by 2 percent.

Markdowns in the second half of the year are likely to be lower compared to year-before levels, CEO Persson said on a conference call with analysts and media.

H&M stood by its full-year guidance for sales growth at its newer add-on brands and online of more than 25 percent, and a better group result than last year.

The outlook seems optimistic and inventory levels meant risks of further markdown pressure in coming quarters, said RBC analyst Richard Chamberlain, who holds an "underperform" rating on H&M.

"We are concerned that H&M is over-distributing and may be forced to cut its dividend this year or next if sales trends remain sluggish," he said.

Unusually, H&M, the world's second-biggest apparel retailer after Zara owner Inditex, did not provide a preliminary sales figure for the current month.

($1 = 8.1805 Swedish crowns) (Reporting by Anna Ringstrom and Helena Soderpalm; editing by Jason Neely)

Advertisement

Should you loved this informative article and you would like to receive much more information about men apparel assure visit the internet site.
번호 제목 글쓴이 날짜 조회 수
3206 On Wednesday, My Mom, Tom And I Had Been Nonetheless Looking Like Crazy For Those Items. Mattresses Are Usually One In Every Of The Elemental Gadgets Folks Require Therefore Marketable. Many Key Leaders Of Wholly Nation Die In This Assault, Thoughthe AlexandraFarnell8467 2018.06.21 94
3205 Cheap Jerseys From China 60335 JannieE62461978257 2018.06.21 93
3204 Second Hand Iphone 6 Plus 43489 SimoneBrumby5748320 2018.06.21 65
3203 As With Regards To Been Use To Have To Buy A Fashion Laundry. RondaTimbery598542179 2018.06.21 95
3202 How Come Individuals Like Nike Tennis Shoes? DrewDoolette334545 2018.06.21 73
3201 Skin Acne Skin Care Treatments Available For Any Person LavadaJonathan9076 2018.06.21 114
3200 Free To Air 47882 GarfieldJanzen4062 2018.06.21 72
3199 Online Casino AnnettaRivett2174920 2018.06.21 75
» H&M Q1 Profit Plunges As It Warns Of More Price Cuts Ahead MarielHimes0442797 2018.06.21 109
3197 Casino Games Slots MerlinHeberling13747 2018.06.21 97
3196 New Huarache Nike Shoes For Basketball ConnieSowerby41 2018.06.21 98
3195 Casino Games Shauna0717075853 2018.06.21 94
3194 Casino Games Slots GraceBrunson649063 2018.06.21 103
3193 he has a 64 Talib kno... SheilaFlaherty65655 2018.06.21 58
3192 Wholesale Jerseys 79829 PhillippLajoie48394 2018.06.21 54
3191 IPhone Cases 27952 ClarenceSharrow09 2018.06.21 72
3190 Search Engine Optimization Is Indeed , Pretty Simple DaniHorder83759 2018.06.21 59
3189 The Most Useful Technique Available For Isabel Marant Sneakers Online AliceWhitcomb5218 2018.06.21 88
3188 Sex Toys 98352 CarissaT20799316 2018.06.21 100
3187 Choosing Realize That Clean Website Design Company To The Business AimeeLawrence8509 2018.06.21 179
Top