Report: H&M is feeling the fallout from an accumulation of unsold merchandise
Amid declining profits, H&M does have a surplus in one area — inventory.
The company is increasing markdowns this quarter after accumulating a record pile of unsold garments worth more than $4 billion, according to Bloomberg.
The company’s operating profit fell 62% to its lowest level in more than a decade. This was due to unseasonably warm European weather in January followed by February’s cold snap. When clearance sales failed to reduce quantities of T-shirts and jeans that customers had passed over, the company slash prices even more, to no avail, according to the report.
CEO Karl-Johan Persson said in the report that the company made mistakes by narrowing its assortment last year, though he expects sales to improve in the second half.
To read more, click here.
The company is increasing markdowns this quarter after accumulating a record pile of unsold garments worth more than $4 billion, according to Bloomberg.
The company’s operating profit fell 62% to its lowest level in more than a decade. This was due to unseasonably warm European weather in January followed by February’s cold snap. When clearance sales failed to reduce quantities of T-shirts and jeans that customers had passed over, the company slash prices even more, to no avail, according to the report.
CEO Karl-Johan Persson said in the report that the company made mistakes by narrowing its assortment last year, though he expects sales to improve in the second half.
To read more, click here.