H&M’s Inventory Problem Forces It to Cut Prices Even More
- Discounts to increase as earnings miss analysts’ estimates
- CEO says he sees better second half; shares erase decline
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Hennes & Mauritz AB struggled to deliver new items to its stores in the latest quarter, forcing it to cut prices even more to clear out unsold clothing.
The company reported earnings that fell for a fourth consecutive quarter as stored goods swelled to a record $4 billion. That’s equivalent to almost a fifth of total sales, and up 2 percentage points from a year earlier, while H&M was aiming to reduce that proportion.