Not so good news for H&M.
The Swedish fashion house had a drop of 15.3% in profits, partly due to rising costs and the bad economy.
The company’s Chief Executive reveals:
“H&M stands strong in a challenging market. We increased sales by 8 percent in local currencies and continued to gain market share during what was one of the toughest years for a long time for the fashion retail industry in many countries.
The situation in the sourcing markets has also been challenging. Cost inflation has been high resulting in increased purchasing costs for the fashion retail industry.”
That being said, H&M has opened 226 new stores in the past year.
They’ve also entered into five new markets and created 7,000 new jobs so the company has hopes for a good upcoming fiscal year.
[Image via AP Images.]