FILE: H&M first-quarter sales weaker than expected

Record ID: 1986657

  • Title: FILE: H&M first-quarter sales weaker than expected
  • Date: 27th March 2025
  • Summary: COPENHAGEN, DENMARK (FILE - SEPTEMBER 26, 2024)(REUTERS) EXTERIOR OF H&M STORE H&M LOGO H&M LOGO IN WINDOW CLOTHES ON DISPLAY IN STORE VARIOUS OF EMPLOYEE PUTTING OUT CLOTHES VARIOUS OF GIFT CARDS ON DISPLAY BEIJING, CHINA (FILE - MARCH 25, 2021) (REUTERS) PEOPLE WALKING PAST H&M ENTRANCE IN SANLITUN COMMERCIAL AREA LOGO OF H&M AND IRON FENCES IN SHOPPI
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  • Keywords: H&M Hennes & Mauritz fashion retailer first-quarter results sales spring collections
  • Location: VARIOUS
  • City: VARIOUS
  • Country: Various
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA001192026032025RP1
  • Aspect Ratio: 16:9
  • Story Text:Swedish fast-fashion retailer H&M HMb.ST said on Thursday (March 27) its sales were up just 1% in March after a weaker than expected first quarter, in a sign of a slow start to its spring and summer season.
    H&M has ramped up marketing spend in a bid to boost its brand but the returns on that investment have been slow to appear, with anaemic sales growth and lower profitability.
    The company reported sales of 55.3 billion Swedish crowns ($5.52 billion) for the December to February quarter, up 2% in local currencies but below analysts' mean estimate of 55.9 billion Swedish crowns. March sales growth was weaker than the 4% increase reported a year ago.
    "Our sales and earnings in the quarter were somewhat weaker than planned – but the first quarter is the smallest quarter of the year for us in terms of sales and margin, and we are confident going forward," CEO Daniel Erver said in a statement.
    Increased discounting and marketing investments impacted H&M's profitability in the quarter, the company said, with the operating profit margin falling to 2.2% from 3.9% in the same period a year ago.
    The retailer, which also owns brands including Arket, Cos, & Other Stories, and Weekday, has been upgrading stores and sharply reducing its overall store numbers. H&M has 4,213 stores globally, it reported on Thursday, its lowest number since 2016.
    (Production: Ivan Romero)
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