Fashion retailer H&M reported a 20 percent fall in quarterly profit as summer discounts hurt margins, while sales slowed towards the end of this month. Laura Frykberg reports.
Summer sales are usually a good earner for the fashion industry. But H&M's this year, appears to have backfired. The world's second biggest clothing retailer says its lower-than-usual discounts on extra stock has frayed its margins. Sending its quarterly profit down 20 percent to £460 million. H&M says its online sales have struggled to compensate with a fall in in-store shopping. Its gross margins also dipped to 51.4 percent from 54, while inventories were up 8 percent over the same period. The overall trend though, hasn't impressed H&M shareholders, its stock dropped by 5 percent on Thursday.