The H&M Fashion Store in Oxford Cerex on January 09, 2025 in London, England.
John Kibel Getty Images News | Gety pictures
shares H & M More than 5 % fell on Thursday after the second largest retail stores in the world, sales forecast was lost in the fourth quarter despite reporting a slightly better height than expected in the entire public employment profit.
The Swedish fashion giant recorded a operational profit of 17.3 billion Swedish kruna ($ 1.57 billion) for 2024, compared to the Swedish Croos’ expectations of 17.2 billion by analysts in the LSEG survey.
The operating profit in the fourth quarter was 4.6 billion Swedish chips, compared to 4.2 billion Swedish analysts Kruna.
Meanwhile, sales amounted to 62.19 billion Swedish chips in the fourth quarter, less than 63.48 billion expectations in a Reuters poll, but by 3 % in local currencies. In 2024, sales increased by 1 % in local currencies at 234.58 billion Swedish crowns.
The shares were 5.32 % less by 8:03 am London time.
“Sales and operational profit increased in the fourth quarter, driven by strong sales over the Internet, well -received women’s fashion groups and effective control control. By focusing on our basic work and providing our plan and CEO Daniel Air said in a statement accompanying the results.
In the future, Ervér said it expected to reduce pressure on consumers in 2025, and added that the company was in a good position to deal with any “negative external” effects in international trade.
He said: “While the conditions of continuous macroeconomics, challenge and geopolitical certainty may affect the morale of the consumer during 2025, we see some positive signs such as inflation and interest rates decreased.”
“Our various supply chain gives us the necessary flexibility to alleviate the negative external impact in different markets. This is, along with the idea of our business – fashion and quality at the best price in a sustainable way – creates strong flexibility and puts us well for growth in the global fashion market.”
H & M is struggling to compete against her opposition, as well as low -cost retailers such as Shein Shein Fast Fast Mashing.
In September, the company canceled the goal of its profit margin for 2024, as it increased costs and increased competition in profit in the third quarter.
The results determine the latest test of the CEO Everér, who was appointed in this role in January 2024 to accelerate the group’s transformation.
This is an urgent news story and will be updated soon.
