H&M's Q2 Misses Forecast Amid June Sales Drop, Shares Fall

H&M, the world's second-largest listed fashion retailer, reported a smaller-than-expected rise in operating profit for March-May and anticipates a decline in June sales. The Swedish retailer's operating profit for the period was €7.1 billion ($672.5 million), compared to €4.74 billion the previous year. The company expects June 2024 sales to decrease by 6% in local currencies compared to the same period last year, attributing the decline partly to unstable weather in several major markets.

CEO Daniel Erver noted that despite the challenges, the company still aims to achieve a 10% operating margin for 2024. However, external factors such as material costs and foreign currency fluctuations have made this goal more difficult to attain. The company's shares fell nearly 14% following the announcement, as H&M continues to struggle with winning back cost-conscious customers amid inflationary pressures.