Inditex's third profit warning this year and disappointing November sales for H&M have sparked fears of tough times ahead for fast fashion retailers.
Zara owner Inditex warned that like-for-like sales in the first four weeks of the fourth quarter were 'below expectations'. At the same time, the retailer posted net profit for the third quarter of EUR284.6 million (£200.5 million) - compared with EUR274.1 million (193.1 million) a year ago - missing analyst forecasts.
H&M posted a 4 per cent sales lift in November, against analyst expectations of an 8.7 per cent surge.
Goldman Sachs analyst Keith Wills said: 'Mild weather, the consumer environment and lack of a compelling fashion story have made it hard for them to shift stock.'
- Comment: page 10.
No comments yet