Pursuits

H&M Sinks to Four-Year Low as Retailer Signals Deeper Price Cuts

  • Shares fall as much as 6.6%, steepest drop since June 2016
  • Company unveils Arket, first new store brand in three years
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Hennes & Mauritz AB said price cuts to clear inventory over the next three months may exceed last year’s, sending the shares tumbling to a four-year low.

Chief Financial Officer Jyrki Tervonen’s comment on a conference call prompted a stock-price reversal after the retailer earlier reported first-quarter earnings that beat estimates and announced the addition of its first new store brand in three years.