The Business of Fashion is reporting that after a poor financial start in 2018, Swedish fast-fashion retailer H&M has announced that its first-quarter profits are down by 62 per cent to around $150 million USD. This marks lowest first-quarter profits for H&M in 16 years and is below the mark that the brand conservatively forecasted.
While H&M points to poor weather in the earlier part of the year, which saw warm weather well into January throwing off outerwear sales and then cold weather in February slowing down the sale of spring merchandise.
Industry insiders point to the series of public struggles H&M has had in the past few months, all starting with a poorly conceived marketing image.
Source: The Business of Fashion