H&M Backs Margin Target But Cautions on More Challenging Conditions
By Dominic Chopping
STOCKHOLM--Swedish fashion retailer Hennes & Mauritz backed its profitability target for this year, but cautioned that conditions have become more challenging as raw materials and currency are now expected to have a more negative impact in the second half than previously expected.
"The most important prerequisite for achieving our goal is that sales growth is further strengthened in the second half of the year compared with the second quarter increase," said Chief Executive Daniel Erver.
The company said sales in June are expected to fall 6% in local currencies on the year as unstable weather in many of its large markets had a negative impact on sales at the start of the month, though sales recovered as the weather normalized at the end of it.
Analysts at HSBC had expected flat to negative mid-single-digit sales growth in June due to a tough basis of comparison. Sales between 1-27 June last year increased 10%, driven by favorable weather trends.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
June 27, 2024 02:44 ET (06:44 GMT)
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