Despite having skyrocketed its profit at the end of the first half, H&M’s performance in the second quarter has disappointed analysts. As a consequence, the Swedish large fashion distribution group ended the session with a devaluation of nearly 13% in its shares.
H&M shares, which closed the session at 169.4 Swedish crowns (15 euros), began to fall early in the morning, following the presentation of the group’s half-year results.
In addition to the performance in the second quarter of the year (a period in which the company was affected by adverse weather conditions for the sale of the spring collection), H&M’s share price was impacted by the forecasts made by the group’s CEO regarding the margin.
H&M has announced a worse-than-expected evolution of its operating margin
“Our target of a 10% operating margin remains in place, but conditions have become much more difficult as external factors are influencing costs and revenues, such as materials and currencies, which will have a greater impact than expected,” said Daniel Ervér, CEO of the company.
At the end of the first six months of the fiscal year, H&M’s net result stood at 6,196 million Swedish crowns (549 million euros)shooting up 61.86% compared to the 3,828 million Swedish crowns (339 million euros) in the same period of 2023.
The Swedish company has ended the first six months of the current year with revenues of 113,274 million Swedish crowns (10,039 million euros), which represents a slight increase of 0.69% compared to the same period of the previous year. In the second quarter, sales have risen around 3%.
