Updated
Updated · Bloomberg · Jun 25
H&M Posts 5.91 Billion-Kronor Q2 Profit Miss as Sales Fall 3%
Updated
Updated · Bloomberg · Jun 25

H&M Posts 5.91 Billion-Kronor Q2 Profit Miss as Sales Fall 3%

1 articles · Updated · Bloomberg · Jun 25

Summary

  • H&M reported second-quarter operating profit of 5.91 billion kronor for the three months through May, below the 6.3 billion-kronor analyst consensus.
  • Sales in local currencies fell 3% against expectations for flat growth, underscoring how intense competition and cautious consumer spending are complicating the retailer’s turnaround.
  • June sales are expected to be roughly unchanged from a year earlier, suggesting no immediate rebound after the weak quarter.

Insights

With sales falling for profit, is H&M's turnaround a smart pivot or a surrender to rivals like Shein?
Can H&M's sustainability push overcome its 'greenwashing' image while its business model remains fundamentally unchanged?