H&M missed Q2 profit estimates as leaner stock levels curbed sales
What's new: Operating profit was 5.91 billion crowns versus a 6.38 billion-crown analyst forecast, and H&M expects June sales to be flat.
H&M posted weaker-than-expected fiscal second-quarter profit after tighter inventory controls left it unable in some cases to meet demand. The Swedish retailer reported operating profit of 5.91 billion Swedish crowns for the March-to-May period, flat from a year earlier and below the 6.38 billion-crown average analyst estimate compiled by LSEG. Sales in local currencies were roughly unchanged in the quarter, and the company forecast flat year-on-year sales in June. Chief Executive Daniel Erver said the group had improved profitability and inventory productivity, but leaner stock levels also hurt sales. Excluding a 679 million-crown restructuring charge tied to organizational changes, operating profit rose 11%.