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The chain is facing problems because its customers do not buy in its stores.
STOCKHOLM (Reuters) –
H & M clothing retailer announced Thursday that it would have to further reduce its prices to sell unsold stocks during the summer, after suffering a new decline in quarterly profits.
The Swedish company, which has seen its profits decline in the last two years because its customers buy less in its stores, said that it would now be harder to reach its goal of a "improvement" of annual business figures. [19659005] Read: Zero and two: H & M sales stagnate for the second consecutive quarter .
Earnings before interest for the three months ended May contracted to 22% over the same period of the previous year, settling at 6.010 million Swedish kronor ($ 670 million), slightly below the average of the estimates provided by a Reuters survey.
"The first half of the year has been We believe that there is gradual improvement and we will see a stronger second half of the year," said Karl-Johan Persson, CEO of H & M, on Thursday.
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H & M shares fell 2.18% on the Stockholm Stock Exchange.
After decades of rapid expansion to more than 4,700 stores, the world's second-largest clothing chain behind Inditex – Zara's parent company – is struggling due to stagnation in its sales volumes and problems of adaptation to the competition of low-budget brands and e-commerce.
their income during the quarter of March to May has not changed, after having contracted at in the two previous quarters.
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