Business Standard

Swedish retailer H&M's pile of unsold garments grows as earnings plunge

The stock slumped to the lowest level since 2005

H&M expects sales to return to growth in 2019
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H&M expects sales to return to growth in 2019

Bloomberg
Swedish fashion retailer Hennes & Mauritz said it’s increasing markdowns this quarter after accumulating a record pile of unsold garments worth more than $4 billion.
 
Operating profit fell 62 per cent to the lowest level in more than a decade as clearance sales failed to reduce quantities of T-shirts and jeans that customers had passed over. The stock slumped to the lowest level since 2005.
 
“The worrying sign again comes from unabated piling-up of inventory,” said Chris Chaviaras, an analyst at Bloomberg Intelligence. H&M’s already-downbeat forecast for the start of 2018 was exacerbated by unseasonably warm European weather

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