Despite a series of widespread price cuts, clothing chain store H&M is selling 4 billion dollars of extra merchandise, including Halloween costumes and Christmas sweaters for the month, as consumers taste changing and increasingly fierce competition, and the number of participants in Swedish retailers.
The company has been a favorite of fast fashion for many years, saying it is difficult for customers to buy clothes. Sales fell, and profits fell to the lowest level in 16 years, while the way in stock, H&M’s parent company Hennes & Mauritz, said on Tuesday. The company’s share price fell about 6.8% on Tuesday, to its lowest level since 2005.
“The rapid transformation of fashion retailing continues,” H&M chief executive Karl Johan Persson said in a statement. “The beginning of this year is difficult. Sales in the first quarter had a big negative impact on sales and sales promotion.
Analysts say the common effects of various factors have led to the plight of mergers and acquisitions. Among the millennials, buying good clothes is more interesting than buying cheap goods. Also like Zara, Topshop, more competition, UNIQLO and ASOS – all these customers often with high quality clothing and better website, according to CEO Milton Pedraza Luxury Association, a New York based Market Research company.
“Millennials are looking at quality rather than quantity, which means they don’t need a one-time product,” Pedraza said. “They don’t care much about fashion, they don’t care about classicism and quality, these two are impossible.”
The recent rebound in H&M advertisements shows a black kid wearing the coolest monkey in the jungle, “sweater may also affect sales,” analysts said. After a month’s event, there was widespread appeal for user boycott, and the weeknd and g-eazy of musicians, who were partners with retailers, announced their relationship with the company.
“Carelessness or negligence is a real sad and restless 2018. So the sensitivity of race and culture can be accepted through so many eyes (designers, photographers, creative and marketing teams).” he is in the Instagram g-eazy. “I can’t allow my name and brand to be associated with a company that can make it happen.”
After that, H M apologized for the advertisement, but some in the industry said the company could have a profound impact.
“There’s a strong rebound, especially in places like South Africa, which may let some customers say,” do you know? Anyway, I’m not so loyal. Maybe I’ll be somewhere else, “said Tasha Lewis, a professor of clothing design management at the Cornell University.
In the last quarter, H. M said stocks rose by 7% to a record $4 billion. Last Tuesday, the company’s website was “further reduced to 70 percent off.” “Many projects are obviously a month: the Halloween – themed T – shirt sells 3.99 dollars, and the baby Santa clothing is discounted to $4.99.
In recent years, as more and more customers are shopping on the Internet to find new and more unique clothing, excess inventory has been plaguing many traditional retailers. Several stores, including Messi, Cole and Nord at the department store on holiday last year cut inventories, hoping to avoid providing surplus goods discount. The plan seems to work: retailers have announced the most successful festival performances over the years, and many say they have not resorted to huge notes.
“We maintain a healthy inventory location, which means we don’t need extra discounts to clean up inventory,” Jeffrey Gennette, CEO of Messi said in a recent analyst call. “We are punished for promotion.”
However, it is not the case that H&M is the second largest clothing retailer in the world (second only to Inditex, and owns Zara). Analysts say that the company is particularly vulnerable to consumer impulse. At the end of last year, the company’s quarterly sales began to decline.
“There’s a huge conflict customer expectation is what the company offers,” said Andreas Inderst, an analyst at the Macquarie Group in London. “This is an industry wide issue, but for H, it has become a particularly prominent issue.”
At the same time, company executives say they plan to further reduce their prices in the second quarter because they intend to reverse mergers and acquisitions. The company is also preparing to launch a “low market” discovery that will be discounted by H&M and other brands.