H&M CEO Sees Cuts in Stockpiles That Hurt First-Quarter Profit
H&M said its preliminary sales figure for March shows an increase of 1% in local currencies compared to the same month the previous year.
Photographer: Mayolo Lopez Gutierrez/BloombergHennes & Mauritz AB said that stockpiles of unsold clothing, which hit profit in the first quarter, would be under control by the end of the year.
The Swedish retailer, which has long struggled to maintain a tight inventory, said that part of the reason it’s sitting on so much stock is because disruption in the Red Sea means it has had to ship goods around Africa and bring them in two weeks earlier than expected. However, Chief Executive Officer Daniel Erver said the company is working on whittling down the excess stockpiles and now has better quality products.