// H&M’s local-currency sales grew 6% in its fiscal second quarter
// Shares slid 1.8%
// H&M will reveal full second-quarter earnings on June 27
H&M has reported that sales have risen for a fourth straight quarter but the company admits it requires further investment to bolster its online business as shares slide.
The fashion retailer has struggled to assure investors that it is revivable as shares remain just above the 13-year lows seen in 2018 despite investing in logistics, digital technology and store concepts.
H&M’s local-currency sales grew six per cent in its fiscal second quarter, March-May, from a year earlier, matching expectations in a Reuters poll of analysts, while shares were down 1.8 per cent.
“The rapid changes in the fashion industry continue and we can see that our own transformation work is taking us in the right direction, although hard work and many challenges still remain,” H&M said.
“As customer satisfaction and sales increase, we have intensified our transformation work even further,” it said.
Investors understood the comments to mean H&M had to spend more to transform the business.
H&M will reveal its full second-quarter earnings report on June 27.