Only with discounts can Hennes Mauritz (H M) currently sell clos. This is now reflected in sales: company achieved a profit slump of 44 percent in first quarter of year by end of February compared with same period of 2008. The company’s net profit fell to 134 million euros, company shared.
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Analysts had already anticipated a decline of this magnitude. Also in ZweitenGeschäftsquartal, H M will sell many products with discounts because warehouses are full. The company had warned that rebates and problems with assortment denJahresauftakt be burdened.
Anor reason for slump in profits was changing wear. In national currencies and inclusive of VAT, however, proceeds remained stable, it was said.
H M has been struggling with change in fashion industry for some time. Online retailers such as Zalando and Asos are attracting more and more H M customers. Even at price, fashion chain is no longer measure of all things, chains like Primark are even cheaper. Against great rival from Spain, Inditex, H M currently has look. The Zara mor is much quicker to bring collections with latest trends to stores.
Recently, head Karl-Johan Persson had prepared stock exchange to ensure that H M will only grow profitably again in coming financial year. He hopes to expand online trading. According to previous data, online business accounts for around one third of sales. Last December H M announced that it would like to close more stores than to open it in course of online expansion.
