Inditex: Bernstein analyst Jamie Merriman said that was lower than expected, according to The Guardian. Related:High street stores cut prices to compete for Christmas customers H&M and its rivals have faced pressure from unusually warm weather in recent months, leaving winter garments on the racks. The Swedish company, the world second biggest fashion retailer after Zara owner Inditex, said it expected sales in January, the second month of its fiscal first quarter, to increase 7% in local currencies from a year ago. Markdowns in relation to sales in the first quarter of 2016 are expected to have a negative effect on the gross margin of one to two percentage points compared to the same quarter in 2015, it said in its fiscal fourth-quarter earnings report released on Thursday. Pretax profit in September to November fell to 7.15bn Swedish krona from 7.8bn krona a year earlier, against a mean forecast in a Reuters poll of 7.14bn krona. H&M, which has seen margins shrink in 2015 also from currency movements and large investments in its e-commerce roll-out, reported a quarterly pretax profit drop in line with market expectations.
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