Hennes & Mauritz (H&M) reported weaker-than-expected second-quarter earnings and stated gross sales fell in early June.
Working earnings amounted to 7.1 billion Swedish kroner ($670 million) within the three months to Could (the group’s monetary yr runs from December 1 to November 30), H&M introduced. This quantity falls in need of analysts’ expectations of seven.4 billion crowns. Working margin got here in at 11.9%, beneath estimates. The inventory has fallen 12.5% for the reason that outcomes had been introduced.
June gross sales are more likely to be down about 6 % in native currencies in contrast with final yr, H&M stated, blaming unhealthy climate in a lot of its main markets. Gross sales rebounded because the climate improved on the finish of the month, it stated. Inditex, which owns Zara, stated earlier this month that it noticed gross sales rise 12% at first of its Could quarter.
New chief govt Daniel Herver, who took over after the sudden resignation of Helena Helmerson in January, is below strain to hurry up H&M’s turnaround. The retailer faces intensifying competitors from Zara and upstart contenders equivalent to China’s Shein.
The CEO change has to date left Helmerson’s technique largely intact, together with an formidable goal to double gross sales by 2030 from 2021 ranges and a goal to attain a ten% working margin for the present monetary yr. The corporate stated it’s sticking to that purpose.
H&M focused for tax evasion in Greece
By means of the brand new sort of cross-checks carried out by AADE, the H&M branches had been revealed, wherein some money registers had not transmitted 1000’s of receipts to AADE.
After the 48-hour “lockouts” and the fines imposed on the 5 branches of the multinational, the tax auditors are “leaf and feather” the corporate’s books with the primary data indicating that variations have already been recognized within the particulars of the receipts issued with the info entered within the month-to-month VAT returns.
Variations within the VAT declarations imply that the H&M branches not solely didn’t transmit to AADE the info of the receipts that they had minimize but additionally hid revenue from the retail gross sales they made.
The tax audit continues and because the related actors report, when it’s accomplished “we’ll know if the corporate, along with the sanctions for not transmitting information to the AADE, may even be confronted with bells for tax evasion”.
Supply: ot.gr
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