H&M's fourth-quarter profit was much lower than the same period last year.
(AFP)
[Financial Channel/Comprehensive Report] The Swedish multinational clothing industry H&M announced its financial report for the fourth quarter (September-November) on Friday (27th). Affected by soaring costs and weak consumer confidence, the Q4 operating profit was only SEK 821 million ( About NT$2.4 billion), far lower than the same period last year and the market's original expectations, causing H&M's stock price to fall before the market.
"Reuters" reported that H&M's profit in the same period last year was 6.26 billion Swedish kronor (approximately NT$18.3 billion); analysts expected a profit of 3.67 billion Swedish kronor (approximately NT$10.7 billion), but H&M's Q4 profit was only 821 million Swedish kronor. It is equivalent to a reduction of about 15.9 billion Taiwan dollars.
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H&M previously explained that the lower profit in the fourth quarter was due to external negative factors and the exit from the Russian market, and H&M said that the company did not fully transfer the cost to consumers, causing its profit to drop more than expected.
H&M CEO Helena Helmersson said that the exit from Russia and the increase in raw material, freight and energy costs caused the company to lose about 5 billion crowns (about NT$14.6 billion).
In order to reduce operating costs, H&M announced at the end of last year that it would lay off about 1,500 people worldwide.
Affected by the poor financial report, H&M's stock price fell 7% before the market on Friday (27th). As of 7:30 pm Taipei time, H&M fell 5.15%.
H&M's stock price has been weak in the past year, with a drop of about 30%.
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