H&M shares decline as clothing retailer warns of discounts

Shares of H&M fell as much as 7% after the group warned it expects to lose additional profit to markdowns in the current quarter. The guidance signals weaker pricing power/inventory dynamics and creates downside risk to near-term margins and earnings for the retailer.

Analysis

Shares of H&M fell as much as 7% after the group warned it expects to lose additional profit to markdowns in the current quarter. The guidance signals weaker pricing power/inventory dynamics and creates downside risk to near-term margins and earnings for the retailer.