H&M has reported a bigger than expected fall in quarterly profit amid online expansion and implementation of a new logistics system.
Profits before “financial items” for the nine months fell 29 per cent to 11.3m Swedish kronor, while the group’s profit margin fell from 53.6 per cent to 52.1 per cent.
“The rapid changes in the fashion industry are continuing and the H&M group is in an exciting transitional period,” CEO Karl-Johan Persson said.
“Our transformation work has contributed to a gradual improvement in sales development with increased market share in most markets during the third quarter.”
However, shares in H&M spiked 9 per cent higher after the Swedish company reassured investors that it would not need to cut costs further to shift unsold clothing.