H&M reported weaker-than-expected sales in its fiscal first quarter due to continued depressed demand. Sales increased by 2% in local currencies to 55.33 billion Swedish krona ($5.5 billion), slightly below forecasts. Operating profit totaled 1.2 billion Swedish krona, resulting in an operating margin of 2.2%. The retailer attributed the weaker operating profit to negative external factors, increased markdowns, and investments in the customer offering. CEO Daniel Ervér expressed confidence in the company’s future, highlighting priorities such as a strengthened product offering and a stronger brand. This marks another challenging quarter for H&M as it faces stiff competition from rivals like Zara and Shein. — news from CNBC
