Dive Summary:
- Poor weather conditions and a rough economic climate are being blamed for Swedish fashion retailer Hennes & Mauritz AB's 10% drop in profit to 2.46 billion kronar ($380 million) during the first quarter, reported Thursday.
- Foreign exchange market shifts also hurt the company as the krona strengthened against other currencies, and CEO Karl-Johan Persson warned that 2013 would continue to be "challenging," with a delay in the start of the spring collection due to an unusually cold start to Q2 among the problems.
- The company's Asian sales, however, remained strong and the January launch of its mobile commerce site was well-received.
From the article:
... CEO Karl-Johan Persson said sales in the quarter had been below expectations and cautioned that 2013 would remain “challenging.” He said H&M would open outlets in five new countries — Chile, Estonia, Lithuania, Serbia and Indonesia — bringing the total number of new H&M stores this year to 350, with more expansion plans next year, including launching outlets in Australia. H&M is also planning to start a new sportswear and accessories range at the beginning of 2014. ...
