Swedish fashion chain Hennes & Mauritz had to present less than favourable results for its new fiscal year: investor trust has dwindled, now that sales in its home territory have also dropped for the first time in decades.
Swedish Hennes & Mauritz, which is still the world’s second largest fashion network, had to present dwindling quarterly results once more: between December and February, clothing sales yielded a 46.2 billion Swedish krona (4.6 billion euro) turnover, which is below the 47.3 billion (4.7 billion euro) krona forecast and below last year’s result, which was 47 billion krona.
The fashion chain sent out an alert last month that the price cuts it had to give because of its excess stock would negatively impact the sales results. H&M also presented the same argument in last year’s third quarter in order to clarify its disappointing sales.
Drop in Sweden as well
The company’s quarterly results also reveal a worrisome trend: for the first time in decades, its sales also dropped in its home nation of Sweden, where it welcomed fewer customers in its own store network. On its capital markets day in February, where it talks to its main investors, H&M was unable to convince them it had a strategy to turn the tide.
Competitor and Zara’s parent company Inditex revealed its own results earlier this week and those stood in stark contrast to those of H&M: the company achieved a 9 % turnover increase in the first five weeks of the fiscal year and also performed very well online.