H&M’s shares dived on Friday after the fashion giant presented historically poor sales figures.
Analysts had calculated on average that the group’s sales would increase by almost 5 per cent in local currency in the fourth quarter, according to SME Direkt. However sales fell by 2 per cent.
The group’s sales were weighed down by the H&M brand’s physical stores which continue to be negatively affected by challenges posed by falling customer traffic due to a shift to online sales. There was also an imbalance in parts of the H&M brand’s compilation of its collection, something that chairman Stefan Persson addressed in an interview at the end of November.
In Dagens Industri (DI) today, owner Henrik Didner, comments that the market has changed more than H&M has realised and a new management is required to turn things around.
The company’s share price plummeted 13 per cent on Friday.
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