The Swedish fashion chain Hennes and Mauritz (H&M) experienced a significant drop in its shares this Thursday, minutes after presenting its balance sheet for the first half of the year and announcing negative forecasts for its sales in June.
The company’s shares fell 13.4% to 168.65 (14.95 euros) Swedish crowns at 09:40 local time (07:40 GMT). Despite reporting a net profit of 6,196 million crowns (549 million euros) in the first half of its fiscal year, which is 62% more than the same period last year, the company’s results were below analysts’ forecasts.
H&M presented its balance sheet for the first half of the year, which showed a net profit of 6,196 million crowns (549 million euros), a 62% increase year-on-year. However, the company also announced negative forecasts for its sales in June, citing weather instability in many of its large markets and a later start of sales compared to the previous year.
The company reported that it earned 443 million euros in the second quarter of 2024, a 52% increase year-on-year. However, the company also announced that it expects a 6% decrease in sales, recorded in local currencies, in June, due to the unstable weather in the main markets at the beginning of the month and the solid numbers of the same period of 2023.