Shares in Hennes & Mauritz AB fell sharply Thursday after the fashion retailer said profit sank in the third quarter amid a heavy bout of price-cutting and fewer visitors to its stores, according to Market Watch. The company said it initiated a period of "aggressive markdowns" over the summer after entering the third quarter with too much stock. H&M said that while the move helped shift inventory and clear the way for its new autumn range, sales slowed somewhat toward the end of September. The downbeat results underscore the diverging fortunes of H&M and its main rival, Zara owner Inditex SA -- which reported upbeat earnings earlier this month -- as well as the cost of the Swedish company's sluggishness to embrace digital.
"The revolution has begun!" praises Livia Firth, Founder and Creative Director of www.eco-age.com. Eco-Age is committed to helping brands to create a culture of purpose. At a time when consumers, employees, businesses and investors have an unprecedented interest and alignment with positive social and environmental impacts, Eco-Age is uniquely able to create bespoke sustainability solutions that deliver a unique and powerful positioning.
But while some think this may indeed begin the green revolution, others doubt. While it's great news overall doesn't this rather show the shift towards online retailers like asos, boohoo, etc?
THE REVOLUTION HAS BEGUN! #activecitizens realising #fastfashion business model doesn’t work! 🏆 “H&M reported the biggest drop in quarterly sales in at least a decade Friday as fewer customers visited H&M stores, raising questions about the company’s expansion plans. The retailer said it plans more store closures and fewer openings as a crisis that’s shuttered shopping malls in the US spreads to other parts of the world. The company’s earnings have suffered this year amid markdowns to clear out inventory.” Via @bof