HandM Q1 profit plunges, more price cuts ahead

Last Updated: Mar 28 2018 | 7:06 AM IST

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New Delhi, Mar 28 (ANI): HandM on Tuesday warned that high inventories will carry price cuts into the second quarter, after the clothing retailer reported a 61 percent plunge in first quarter profit hurt by price cutting. HandM had already warned it may not be pretty Markdowns due to weak demand in HandM's main brand stores would hit earnings, it said in February. Then came a quarterly sales fall of two percent. And now the clothing retailer has reported a 61 percent plunge in first quarter profit to 154 million dollars. Inventories had risen by a bigger-than-expected seven percent. And attempts to adapt to shoppers moving online meant 2018 was becoming 'a transition year'. HandM stock has fallen by more than a half since November 2016.