Swedish fashion chain H&M has said profits in the third quarter were hit by a combination of hot weather, increased markdowns and a stronger dollar.
The retailer said the autumn trading season got off to a tough start because exceptionally hot September weather in the UK and other European countries put people off buying warmer clothing and led to increased discounting.
A stronger dollar also pushed costs up over the quarter. Pre-tax profit fell 9.2% to 6.3bn kronor (£567m) between 1 June and 31 August, falling short of analysts’ expectations. Sales including VAT rose 6% to 56.8bn kronor.
Karl-Johan Persson, H&M’s chief executive, said: “Sales were good in most of the markets up until mid-August. Thereafter sales were negatively affected by unseasonably hot weather which continued into September, resulting in a challenging start to the autumn season.
https://www.theguardian.com/business/2016/sep/30/hm-profits-hit-by-hot-weather