<\/p>\n
\n\tGlobal supply chain disruptions due to conflict in the Middle East, and logistics woes in Europe stymied third-quarter growth at H&M, where net sales remained broadly flat at 57.19 billion Swedish kronor, or 5.07 billion euros, while sales in local currencies rose 1 percent compared with the corresponding quarter last year.<\/p>\n
\n\tThe parent of brands including H&M, Cos, Arket and & Other Stories, said it was trading with 2 percent fewer stores during the three-month period ended Aug. 31, part of a wider strategy by chief executive officer Daniel Erv\u00e9r to tighten operations and increase the Swedish retailer\u2019s speed-to-market.<\/p>\n
\n\tDespite the lackluster sales, profits continued to rise as Erv\u00e9r\u2019s efficiency plan takes hold. Operating profit in the period rose 23 percent to 6.04 billion kronor, or 535.3 million euros, while profit after tax was up 28 percent to 4.10 billion kronor, or 363.4 million euros. <\/p>\n
\n\tErv\u00e9r said H&M\u2019s work, \u201cespecially within purchasing, cost control and more efficient operations \u2013 has contributed to a more profitable business. Although sales developed in a positive direction during the quarter, we see further potential to increase sales going forward.\u201d<\/p>\n
\n\tHe said the summer collections were \u201cwell received and contributed to better sales development, particularly towards the end of the quarter. At the same time, sales were affected by, among other things, continued disruptions in the logistics network in Europe and in the global supply chain.\u201d<\/p>\n
\n\tErv\u00e9r noted that operating profit included the positive one-time effect related to tariffs and goods imports in the previous year, while operating margin for the last 12-month period increased to 9 percent. He said the main driving forces behind the improved profitability over the past year have been H&M\u2019s work on \u201cpurchasing, cost control and more efficient operations.\u201d<\/p>\n
\n\tThe company said H&M group sales in September, a month that saw the Cos and H&M runways disrupted by PETA protestors, are expected to increase by 1 percent in local currencies compared with the same month the previous year. <\/p>\n
\n\tThe company added the cost of markdowns as a percentage of sales in the fourth quarter of 2026 is also \u201cexpected to increase somewhat, compared with the corresponding quarter the previous year.\u201d<\/p>\n
\n\tThe group said it is closely monitoring developments in the Middle East and the implications for global trade. \u201cWith good flexibility in the supply chain and a low proportion of air freight, there are opportunities to adapt flows of goods to changed conditions,\u201d H&M said.<\/p>\n
#Global #Supply #Chain #Woes #Weigh #Sales #Quarter<\/p>\n","protected":false},"excerpt":{"rendered":"
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