Fashion Retailer H&M Reports Modest Sales Growth In Q1, Faces Margin Pressures

Swedish fashion retailer Hennes & Mauritz AB (OTC:HNNMY) (OTC:HMRZF) reported a 3% increase in net sales for the first quarter of its fiscal year, reaching 55.3 billion Swedish Krona ($5.1 billion).

The growth in local currencies was 2%, influenced by a 3% reduction in store count compared to the previous year.

Despite challenges, the company noted strong sales momentum in Western, Southern, and Eastern Europe, with Germany and Poland performing particularly well.

Gross profit for the quarter amounted to SEK 27.2 billion, with a gross margin of 49.1%, down from 51.5% in the same period last year.

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The decline was attributed to external economic ...