STOCKHOLM: Hennes & Mauritz (H&M) AB reported a brisk slowdown in gross sales development, changing into one of many first retailers to sign how has the battle in Ukraine is weighing on consumption.
Gross sales rose 6% in native currencies in March in contrast with 23% development within the three months by means of February, H&M mentioned yesterday.
The battle and a resurgence of Covid in China are weighing on the prospects for retail after a latest rebound. H&M has paused gross sales in Russia, its sixth-biggest market, accounting for about 4% of complete income.
H&M had 227 shops closed as of Wednesday, most of them in Russia, Belarus and Ukraine. Excluding these three international locations, income rose 11% in March.
Pre-tax revenue reached 282 million kronor (US$30mil or RM126.12mil) within the three months by means of February, far in need of the common analyst estimate.
The primary quarter usually contributes much less to revenue than the remainder of the 12 months because it contains post-Christmas clearance gross sales.
H&M had a loss within the year-earlier interval because of pandemic-related retailer closures and reductions to filter stock after Christmas.
H&M’s stock started to pile up in 2016, and the retailer remains to be struggling to deliver down the extent. — Bloomberg