Next Warning, H&M Cuts Add to European Retail Woe as Prices Soar
- H&M plans cost savings as garment prices gain on strong dollar
- Next cuts outlook for second time this year on inflation
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Next Plc and Hennes & Mauritz AB reports added to gloom from European retailers as inflation simultaneously makes clothing more expensive and reduces consumer purchasing power.
Next issued its second profit warning this year on Thursday. H&M said it will cut costs by 2 billion Swedish kronor ($180 million) annually after its exit from Russia and higher garment and transport costs caused third-quarter earnings to slump 86%.