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Tag: H&M Hennes & Mauritz AB Series B

  • H&M shares fall as retailer misses sales expectations; CAC 40 leads advance

    H&M shares fall as retailer misses sales expectations; CAC 40 leads advance

    H&M shares slumped Friday as the Swedish retail chain missed expectations for sales growth in a quarter in which it said it focused on profitability.

    H&M stock
    HM.B,
    -5.62%
    dropped 4% in early action, though it has rallied 47% this year.

    In a brief statement, H&M said fiscal third-quarter sales in local currencies was “flattish,” missing analyst estimates for 5% sales growth. It said its goal of reaching a 10% operating margin next year “is going in the right direction” and that profitability and inventory levels have been priortized in the quarter.

    Analysts at RBC said weather may have dampened sales, but that it also has become more expensive this season — for instance, pricing 10% below average in the U.K., versus 20% traditionally. Its publicly traded rivals — Inditex
    ITX,
    +0.58%    ,
    the Primark unit of Associated British Foods
    ABF,
    +0.24%
    and Next
    NXT,
    +0.64%
    — have each reported stronger sales growth.

    The broader tone in European markets was positive, except for tech stocks, with ASM International
    ASM,
    -5.44%
    shares losing 5% and ASML Holding
    ASML,
    -2.51%
    down 2%.

    The French CAC 40
    FR:PX1
    led the major regional indexes with a 1.3% rise, as the U.K. FTSE 100
    UK:UKX
    and German DAX
    DX:DAX
    also rose. Better-than-expected Chinese retail sales figures helped Paris-listed luxury plays.

    Stellantis shares
    STLAM,
    +0.69%
    fell 1% as the United Auto Workers began a strike at an Ohio plant, along with one plant each at fellow Big Three automakers Ford and General Motors.

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  • H&M to Launch in Brazil During 2025

    H&M to Launch in Brazil During 2025

    By Dominic Chopping

    STOCKHOLM–Sweden’s Hennes & Mauritz Monday announced plans to launch physical and online stores in Brazil during 2025.
    

    The fashion retailer said it will initially enter major cities in southeast Brazil with a view to further increase its presence across the country over time.
    

    

    In Latin America, H&M is currently present in Mexico, Peru, Uruguay, Chile, Colombia, Ecuador, Guatemala, Panama, and Costa Rica, and it said that with a population of over 210 million in Brazil there is considerable potential for expansion.
    

    To support the initiative H&M said it is partnering with Dorben Group, a Latin American luxury and fashion retail partner.
    

    Write to Dominic Chopping at dominic.chopping@wsj.com
    

    

    


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  • 
		
		
    
			
    Hennes & Mauritz 2Q Sales SEK57.62B
    
			
    Hennes & Mauritz 2Q Sales SEK57.62B
    
			
    

    

    

    By Dominic Chopping
    

    STOCKHOLM–Sweden’s H&M Hennes & Mauritz on Thursday reported fiscal second-quarter sales that were slightly below expectations.
    

    The fashion retailer said sales for the quarter ended May 31 increased by 6% on year to 57.62 billion Swedish kronor ($5.38 billion), while net sales in local currencies were “flattish”.
    

    Analysts…
      
    

    

    


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  • 
		
		
    
			
    H&M profit drops after Russia exit costs
    
			
    H&M profit drops after Russia exit costs
    
			
    

    

    Sweden’s Hennes & Mauritz AB said Thursday that net profit for its third quarter fell significantly after it booked a one-time cost related to the winding down of its Russian operations, and that it will start a cost and efficiency program.
    

    The company
    
        HM.B,
    
        -3.17%
    
       posted a net profit of 531 million Swedish kronor ($47.4 million) for the fiscal quarter ended Aug. 31, compared with SEK4.69 billion a year earlier. Analysts polled by FactSet had expected a net profit of SEK2.17 billion.
    

    

    Sales were SEK57.45 billion compared with SEK55.59 billion a year earlier. Analysts polled by FactSet had expected sales of SEK57.45 billion.
    

    The company said it has booked a one-time cost of SEK2.10 billion, related to the winding down of Russian operations, hitting the result for the quarter.
    

    The cost and efficiency program is expected to result in annual savings of around SEK2 billion.
    

    “The third quarter has largely been impacted by our decision to pause sales and then wind down the business in Russia. This has had a significant effect on our sales and profitability, which explains half of the decrease in profits compared with the third quarter last year,” Chief Executive Helena Helmersson said.
    

    Write to Kyle Morris at kyle.morris@dowjones.com
    

    

    


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