PARIS — Hennes & Mauritz AB reported a 19 percent drop in third-quarter profit as the retailer continues its broad overhaul to adapt to shifting consumption habits.
Profit for the three months ended Aug. 31 was 3.91 billion Swedish kronor, or $351 million.
“The rapid changes in the fashion industry are continuing and the H&M group is in an exciting transitional period. Our transformation work has contributed to a gradual improvement in sales development with increased market share in most markets during the third quarter, particularly in Germany, Sweden, Eastern Europe, Russia and China,” said the group’s chief executive officer Karl-Johan Persson.
Sales over the quarter, as previously reported, were 64.8 billion Swedish kronor, or $7.16 billion, up 4 percent in local currencies, with the company flagging its transitional efforts as contributing to the improved performance.
H&M earlier this month posted a 9 percent rise in third-quarter sales to 64.8 billion Swedish kronor, beating expectations and stemming a string of bad news with a report of market-share gains.
H&M has in recent months embarked on a broad overhaul, bulking up logistics networks and investing in digital means in order to catch up, after rivals sped ahead while it struggled under the weight of unsold inventory. The new logistics system will speed up the efficiency of the supply chain, H&M has said.