H&M misses profit forecasts on costs

HENNES & MAURITZ, the world’s No.2 fashion retailer, missed first-quarter profit and sales forecasts, raising doubts over its strategy of holding prices despite rising cotton costs and currency headwinds.

The Swedish budget clothing chain posted a 30 per cent dive in pre-tax profit to 3.54bn crowns (£348m) for the three months ended February.

This was the third quarter it missed forecasts, pitched at 3.84bn crowns.

Data showed an unexpected fall in February retail sales in Germany, H&M’s biggest market.