Business Standard

H&M to close 170 stores as it posts biggest profit drop in six years

H&M's gross profit margin for the financial year to November 30 fell to 54 per cent from 55.2 per cent a year earlier, in contrast to the Inditex gross profit margin



Fashion retailer H&M said on Wednesday it would open far fewer stores in 2018 as it responds to the shift to shopping online and announced plans to launch a new outlet to sell external brands alongside its own ranges.

Following decades of rapid expansion, the world's second-biggest clothes group after Zara owner Inditex has struggled to respond to the growth of ecommerce. Its image was dented further last month by an ad slammed by many as racist.

H&M, in which the founding Persson family owns a 33 per cent stake, reported an unchanged dividend but said it might give shareholders

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 31 2018 | 7:11 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to