by Anthony B Sanders
Swedish retailer H&M, operating in 62 countries with over 4,500 stores and, as of 2015, employ around 132,000 people, suffered a downward sales shock leading to a decline in their stock price.
(Bloomberg Intelligence) — The scale of the revenue miss in this key fashion quarter should initiate more radical change at the H&M brand, as profit is set to be rebased lower. The excess level of inventory needs to be rapidly reduced so the company’s fashion schedule can be reset, ideally with more short-lead time merchandise in the mix. The portfolio of stores will need more radical pruning, as shoppers are spending more online. H&M’s belated integration of online and bricks-and-mortar retail is another action that needs to be accelerated.
H&M 4Q sales have been released ahead of more-detailed earnings scheduled for Jan. 31.
Earnings for Swedish retailer H&M, with outlets in Europe, Africa and the USA, is not a positive sign (particularly for brick and mortar commercial real estate).
B&M’s stock price decline closely mirrors that of US retail giant Macy’s.
It is a retail inferno globally.
Here is a photo of George Mason University students showing off their H&M bling. Or it is a photo of them celebrating the end of final exams.