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Fashion retail giant H&M’s online sales soar 32% despite stumbling profits

Swedish ready-to-wear fashion retailer H&M (Hennes and Mauritz) has recorded a whopping surge in its online retail business during the third quarter. In 2018 summer, the brand witnessed a 32 percent growth in online sales.

However, its profits stumbled 19.2 percent.

The fashion company stated that issues that came up during the execution of new logistics systems in the United States, France, Italy and Belgium resulted in odd costs and tumbling profit margin for the company. H&M’s net profit stood at US $ 350 million during the reporting quarter.

“The rapid changes in the fashion industry are continuing and the H&M Group is in an exciting transitional period,” H&M CEO Karl-Johan Persson said in a statement.

The changes talked about here are the efforts made to better penetrate online markets. The changeover has faced solid competition from fast-fashion e-retailers such as Amazon.

Notably, H&M is now present online in 47 markets. The brand is working to introduce its products to more online markets soon.

Persson mentioned that the issues in executing the new logistics systems have now largely been sorted and will make its supply chain faster, more flexible and efficient.

Markedly, H&M invested US $ 700 million in online business last year.

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