Hennes & Mauritz AB on Friday reported a 41 percent drop in first-quarter profit as the company continued to invest in overhauling its logistics system, and reported it is selling more clothing at full price. Adding to the steep percentage decline, the same period last year was boosted by a one-off tax measure in the U.S.
“Our ongoing transformation work has contributed to stronger collections with increased full-price sales, lower markdowns and increased market share,” said Karl-Johan Persson, CEO.
Profit for the Dec. 1-Feb. 28 period was 803 million Swedish kronor, or $86.55 million, as the company replaced its online platform in Germany; the transition weighed on sales in the country over the period.
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