H&M profit lags expectations as pandemic, investments weigh -Breaking
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© Reuters. FILE PHOTO: A woman is reflected next to the logo of the H&M fashion retailer in the newly opened Mall of Berlin shopping centre in Berlin, Germany, in this September 25, 2014 file photo. REUTERS/Thomas PeterSTOCKHOLM (Reuters) – Sweden’s H&M reported on Thursday a smaller profit than expected for the December-February period, its fiscal first quarter, as investments and lingering effects of the pandemic weighed.
Pretax profits of 282million crowns (or $30.45 million) were achieved by the world’s second largest fashion retailer, after a loss of 1.39billion in 2011. Refinitiv polled 1,000 analysts to forecast an average 1.04 billion crown profit.
“Sales and profits for the quarter were impacted by the negative effects of the pandemic in many of the group’s major markets,” H&M said in a statement.
“The increase in growth-related initiatives within Tech and the Supply Chain also had an impact on the result.”
According to the group, sales for March 1 through 28 were up by 6% in local currency. Excluding Russia and Belarus, where H&M has temporary closed stores, the increase was 11%.
($1 = 9.2620 Swedish crowns
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