H&M's Pile of Unsold Garments Grows as Earnings Plunge
- Inventory rose 7 percent to $4.3 billion even after discounts
- Retailer warns it will increase markdowns in second quarter
H&M's Pile of Unsold Clothes
This article is for subscribers only.
Swedish fashion retailer Hennes & Mauritz AB said it’s increasing markdowns this quarter after accumulating a record pile of unsold garments worth more than $4 billion.
Operating profit fell 62 percent to the lowest level in more than a decade as clearance sales failed to reduce quantities of T-shirts and jeans that customers had passed over. The stock slumped to the lowest level since 2005.