H&M Sales Rise 10% In Q1 2019 As Turnaround Plan Takes Off

Turnaround plans for H&M seem to be paying off: the company reported a net sales increase of 10% during Q1 2019. The retailer attributed this growth to its ongoing brick-and-mortar transformation and growing investment in e-Commerce, which will include launching on two Indian e-Commerce sites later this year.

One of H&M’s strategies was reducing its reliance on promotions, which resulted in the retailer’s gross margin to reach 50%, up from 49.9%. Markdowns in relation to sales fell by approximately 1.5 percentage points in Q1 2019 compared to Q1 2018, and the retailer expects them to decrease further in Q2.

The company’s results were above what analysts expected, according to Reuters….