2023-03-15 06:20:30 ET
H&M ( OTCPK:HNNMY ) stock slid sharply on Wednesday after the Swedish retailer’s sales grew at a slower pace than expected to start 2023.
Net sales increased by 3% in local currencies, according to the company’s quarterly earnings release. Sales growth was 7% in local currencies excluding Russia, Belarus and Ukraine, countries in which the company operated unimpeded for the bulk of Q1 2022.
“Hennes & Mauritz’s fiscal 1Q23 3% local-currency sales growth looks disappointing compared to rivals, and though fashion appeal is improving, there needs to be a revenue catalyst to address the 130-plus days of inventory and create a platform for sustained margin recovery,” Bloomberg Intelligence noted in a review of the quarterly report. “Total sales were just below the pre-pandemic level.”
Stockholm-listed shares of H&M slid 7.36% on Wednesday.
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H&M stock slumps as sales growth slows