The fashion retailer H&M has warned they will not be able to meet their profitability target for 2024 due to the “turbulence in the world around us.”
In the third quarter earnings fell wors than expected to £258 million as sales dropped 3% due to bad weather in June.
The fashion giant said sales in the three months to 30 September fell flat amid a “challenging start.”
H&M’s recently hired chief executive Daniel Erver, said, “Consumers’ living costs have remained high during the year, and at the same time we continue to see turbulence in the world around us.
“External factors have impacted our sales revenue and purchasing costs more than we expected.
“At present we estimate that this year’s operating margin will be lower than 10%.”
The group added, “The cost of markdowns in relation to sales in the fourth quarter is expected to increase somewhat.
“The long-term investments in marketing are continuing in the fourth quarter, with costs expected to be a little higher than in the third quarter.”
It added it was “monitoring developments in the Red Sea and the global freight market”
Leave a Comment