<p>Stockholm: H&M, the world's second-biggest listed fashion retailer, reported on Thursday a smaller-than-expected rise in March-May operating profit and said June sales were expected to fall, making its full-year earnings goal harder to achieve.</p><p>Operating profit in March through May, the Swedish group's second quarter, was 7.1 billion Swedish crowns ($672.5 million) against a year-earlier 4.74 billion and a mean forecast in an LSEG poll of analyst of 7.37 billion.</p><p>Sales for the month of June 2024 are expected to decrease by 6 per cent in local currencies compared with the same period last year, partly due to unstable weather in many of the group's large markets, H&M said.</p><p>Chief Executive Daniel Erver said the group still believed in its 10 per cent operating margin goal for 2024 but that this had become more difficult to reach.</p>.H&M appoints new CEO, Q4 operating profit slightly lags expectations.<p>"External factors that influence our purchasing costs and sales revenues, including materials and foreign currency, will have a more negative impact than we expected in the second half of the year," he said.</p><p>"The most important prerequisite for achieving our goal is that sales growth is further strengthened in the second half of the year compared with the second quarter increase," he added.</p><p>The retailer has often fallen short of rival and Zara owner Inditex, while China-founded fast-fashion group Shein is also expanding rapidly in Europe and plans a London stock market listing</p><p>($1 = 10.5564 Swedish crowns) </p>
<p>Stockholm: H&M, the world's second-biggest listed fashion retailer, reported on Thursday a smaller-than-expected rise in March-May operating profit and said June sales were expected to fall, making its full-year earnings goal harder to achieve.</p><p>Operating profit in March through May, the Swedish group's second quarter, was 7.1 billion Swedish crowns ($672.5 million) against a year-earlier 4.74 billion and a mean forecast in an LSEG poll of analyst of 7.37 billion.</p><p>Sales for the month of June 2024 are expected to decrease by 6 per cent in local currencies compared with the same period last year, partly due to unstable weather in many of the group's large markets, H&M said.</p><p>Chief Executive Daniel Erver said the group still believed in its 10 per cent operating margin goal for 2024 but that this had become more difficult to reach.</p>.H&M appoints new CEO, Q4 operating profit slightly lags expectations.<p>"External factors that influence our purchasing costs and sales revenues, including materials and foreign currency, will have a more negative impact than we expected in the second half of the year," he said.</p><p>"The most important prerequisite for achieving our goal is that sales growth is further strengthened in the second half of the year compared with the second quarter increase," he added.</p><p>The retailer has often fallen short of rival and Zara owner Inditex, while China-founded fast-fashion group Shein is also expanding rapidly in Europe and plans a London stock market listing</p><p>($1 = 10.5564 Swedish crowns) </p>