STOCKHOLM (Reuters) -Swedish fashion retailer H&M reported on Thursday a slightly bigger drop than expected in second-quarter sales and said it expected sales in June, measured in local currencies, to rise 3%.
CEO Daniel Erver said in a statement that times are uncertain, with cautious consumers.
Retailers are navigating Trump’s rapidly shifting tariff announcements as concerns grow about resurgent inflation and a global economic slowdown, which have dampened shopping enthusiasm in the United States and other major consumer markets.
“The company is closely monitoring developments in global trade and trade restrictions,” H&M said.
The world’s second-largest listed fashion retailer’s sales in the March-May period were 56.7 billion crowns ($5.99 billion), down from 59.6 billion a year ago. Analysts polled by LSEG had on average forecast a turnover of 57.0 billion crowns.
Measured in local currencies, sales were however up 1%.
“With good flexibility in the supply chain and through the pricing of the customer offering there are opportunities to adapt the business to changed conditions,” H&M said.
Operating profit fell to 5.91 billion crowns from 7.10 billion, against a forecast of 5.88 billion.
($1 = 9.4635 Swedish crowns)
(Reporting by Greta Rosen Fondahn and Helen Reid, editing by Anna Ringstrom)
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