The challenging trading conditions are weighing on the fast fashion sector. H&M reported a modest 5.1% sales growth in 1H16 to SEK90.6bn. The gross margin retreated by 250bps to 54.9% leading to a gross profit of SEK49.68bn. Operating profit dropped from SEK13bn in 1H15 to SEK10.2bn in 1H16, i.e. a 21.3% decline. The operating margin fell to 11.3% vs. 15.1 in 1H16. The net profit amounted to SEK7.9bn versus SEK10.06bn a year earlier. 2Q16 posted a poor performance of 2.2% pulled down by u
22 Jun 2016
Profitability warnings
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Profitability warnings
H&M Hennes & Mauritz AB Class B (HMSB:ETR) | 0 0 0.3% | Mkt Cap: 203,588m
- Published:
22 Jun 2016 -
Author:
Rim BEN SALAH -
Pages:
2
The challenging trading conditions are weighing on the fast fashion sector. H&M reported a modest 5.1% sales growth in 1H16 to SEK90.6bn. The gross margin retreated by 250bps to 54.9% leading to a gross profit of SEK49.68bn. Operating profit dropped from SEK13bn in 1H15 to SEK10.2bn in 1H16, i.e. a 21.3% decline. The operating margin fell to 11.3% vs. 15.1 in 1H16. The net profit amounted to SEK7.9bn versus SEK10.06bn a year earlier. 2Q16 posted a poor performance of 2.2% pulled down by u