Sweden’s H&M reported quarterly earnings that were significantly lower than analysts’ expectations for December-February, as they were affected by the coronavirus, supply chain problems and investment.
In the first quarter, the group returned to pre-tax profits of 282 million kroner ($ 30.5 million) compared to losses of 1.39 billion a year ago, much lower than the estimates for 1.04 billion kroner. .
The results were much lower than pre-pandemic levels, with the group announcing for the first quarter of 2020 profits of 2.50 billion kroner.
The share is down 8%.
“Quarterly sales and profits were affected by the negative impact of the pandemic on many of the group’s key markets,” H&M said in a statement, citing a new wave of coronavirus in some markets, supply chain delays and downtime.
“The results have also been influenced by increased development-related initiatives, especially within the technology and supply chain,” he added.
In the first quarter, sales increased by 23% compared to the previous year, as announced by the company, however, remaining 11% lower compared to the previous two years.
Zara, the second-largest retailer after Inditex, said sales in March, the first month of the second quarter, rose just 6% in local currency.
Source: Capital
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