H&M’s revenue dropped as the consumers had pulled back on spending at the H&M outlets and after the chained clothing brand closed in Russia.
Sales had dropped by 4% in the last three months through November at the constant currencies, the company had said, in line with the expectations of the analysts.
The company has also lost its sales growth momentum that it had demonstrated in the first half of the previous year. The slowdown had increased discounts to clear all the inventory, a problem that the company has been struggling with for over seven years.
The brand has warned in September that the sales were falling that month because of a weird, warm start of autumn in Europe.
H&M shares changed a little in Stockholm.
In the previous year, sales had increased because of a temporary opening in Russia before the brand had permanently discontinued all of its operations in Russia.
H&M had eventually reopened in Ukraine in the month of November after having ceased all of its operations in the country due to the war in February 2022.
Other than Belarus and Russia, the decline in sales all over was 1 percent.
H&M had always been vulnerable to the competition like Inditex and the newer brands like Shein that had had a strong grip over the market with its cut-price offerings.
Yet, the stock price for H&M rose by 57 percent this year as the brand tries to improve its profitability and reduce the backlog in inventories.
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