In an unprecedented move, it’s thought Hennes & Mauritz (H&M) will cut its dividend for the first time ever next year as the retailer struggles to get shoppers in stores.
The Swedish clothing retailer, which is the second biggest clothing company in the world, is expected to reduce its dividend by 7.5 per cent for the financial year of 2018, according to an average estimate of 27 analysts surveyed by Bloomberg.
The cut would be the first move of its kind since H&M began trading shares in 1974.
The move comes as the Stockholm-based company struggles to maintain shopper demand in-stores and market share in an incredibly competitive sector.
H&M’s dividend policy is to distribute about half of its profit after taxes to shareholders.
That means that by maintaining the dividend this year, H&M paid out almost all of its profit from last year.