H&M’s earnings not as bad as expected

An H&M store in Moscow, Russia. Picture: REUTERS

H&M, the world’s biggest apparel retailer after Zara owner Inditex, has seen profits shrink and stocks pile up in recent years due to slowing footfall at its core-brand stores in the face of digitalisation of the sector, mounting competition and not reacting fast enough to demand swings. H&M’s heavy investment in logistics, the integration of stores and online, and a review of its stores and brands to get back on track has been squeezing margins.

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