H&M Besieged China'S Sales Plunged

Recently, H&M moves frequently, first joining the Paris art installation exhibition, becoming its official designated partner, and then launching the limited environmental protection series.

But even so, there is no way to hide the dangerous situation of H&M.

Recently, H&M released its first quarter financial results in fiscal year 2016, and its indicators declined, leading to a decline in Chinese sales.

It is reported that in the first quarter of December 1, 2015 to February 29, 2016, according to fixed exchange rate, H&M group's revenue only recorded an increase of 9%, compared with its strong rival Inditex group far less.

The latter recorded a 15% growth rate from February 1st to March 7th.

And because of the impact of excessive discount, it leads to

The group's gross profit margin plunged by 320 basis points to 55% in the first quarter.

Despite the increase in gross profit, the profit after tax decreased by 29.6% to 1.54 kronor per share.

Despite the group's view, "the worst is over."

But the market, especially investment banks, disagrees.

The reason is that H&M has reached the critical point of development and its high speed.

Still, but due to the impact of its inventory level, coupled with the slowdown in China's regional market economy, H&M recorded a sharp decline of 7.1% in the first quarter, compared with an increase of 41% in the 2015 fiscal year.

The group said its first quarter

The reason is that the purchasing cost is increased due to the strong dollar, while the main purchasing cost of the US dollar is under the influence of the current strong dollar, and the profits of the group are under pressure.

Therefore, the investment bank believes that its indicators in the first quarter are not consistent with market expectations, which will lead to the second and three quarter indicators are affected by this.

However, since the group had already made an early warning before the release of the earnings report, investors have fully digested the current earnings report, and the Group believes that the impact of the US dollar impact will gradually weaken to the fourth quarter and disappear completely, resulting in an early surge of over 5% in the stock market.