H&M Predicts Upswing In Fortunes From 2019

Company Performance

H&M Predicts Upswing In Fortunes From 2019

Despite the onslaught from fashion consumers taking the online route, retail giant, H&M, which happens to be second biggest in size, announced that they expected to improve their performance compared to the previous year albeit to a moderate extent. H&M spokesperson also issued the forecast that from next year on, their physical stores will regain comparable sales growth levels.

Chief Executive, Karl-Johan Persson, in a media statement disclosed, "The physical stores are expected to return to comparable positive sales development from 2019 onwards, and with considerably lower price markdowns relative to sales compared with 2017. Overall, this is expected to lead to good increases in profit."

The Persson family controls the H&M group and is currently holding the first-ever capital markets day. This is seen as a bid to reassure investors who are demanding more details on performance and strategy.

For decades, H&M has been a runaway success story. However, in recent years, sales growth has taken a hit because of digitalization which motivated shoppers to shift to online purchases.