H&M shares Thursday plummeted as much as 6.6%, a four-year low, after the company’s CFO, Jyrki Tervonen, told analysts that bloated inventory could precipitate heavy discounting and hit margins, Bloomberg reports.
The Swedish fast-fashion retailer also reported first quarter results that missed its expectations. Q1 net sales rose 7% to 46.9 billion kronor, though Q1 net profit fell to 2.46 billion kronor ($278 million) from 2.54 billion kronor a year earlier, on higher discounting and slower sales, according to an H&M press release.
