Overview
- H&M reported on Thursday that second-quarter revenues were flat in local currencies and totaled 54.82 billion kronor, while operating profit rose to 5.9 billion kronor but missed analyst forecasts.
- Inventory levels fell about 10 percent to 34.94 billion kronor as the group tightened stocks to improve inventory productivity.
- The company booked a one-off turnaround charge of roughly 679 million kronor that weighed on reported results while adjusted operating profit rose compared with last year.
- H&M reduced its global store count to about 4,038 by closing underperforming H&M outlets, even as it opened new stores in markets such as Rio de Janeiro and announced plans for Paraguay and Argentina, and online sales now account for just over 30 percent of revenue.
- Investors sold the stock after the earnings miss, signaling concern that tighter inventories could hold back sales in the short term even as the company aims to strengthen margins and monitor supply-chain and geopolitical risks.