The past quarter turned out slightly better than expected for H&M Group, despite a significant decline in both profit and revenue. According to CEO Daniel Ervér, the tide might turn in the second half of the fiscal year.
Store closures cost revenue
Higher freight costs, a more expensive US dollar, and ongoing investments in customer offerings significantly impacted profits at the Swedish fashion giant. The operating profit in the second quarter amounted to 5.91 billion kronor (536 million euros). This was slightly above analysts’ expectations but a substantial decline compared to 7.10 billion kronor a year earlier.
