H&M Falls to Nine-Year Low as Clearance Sale Backfires

  • Analyst estimates same-store sales declined 8% last month
  • Retailer struggles with inventory, which reached 1/6 of sales
H&M Falls to Nine-Year Low
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Hennes & Mauritz AB shares fell to their lowest in nine years after the Swedish clothing retailer’s attempt to clear inventory ate into revenue.

H&M slashed prices to get rid of unsold winter garments after unseasonably warm European weather in December and January. That’s weighed on profitability and complicated the clothing chain’s turnaround efforts.