Company Earnings Update 3 minutesRegister for Free AccessH&M (STO: HM-B) 1Q18 Results: Cold Weather and Markdowns Hamper Sales and Profit Growth Coresight Research March 28, 2018 Executive Summary H&M reported a 5.8% decline in gross profit in 1Q18, yielding a 220-basis-point fall in the gross margin to 49.9%. Operating income fell by 62%, representing a contraction of 410 basis points in the margin to 2.6%. Diluted EPS was SEK 0.83 for 1Q18, above the SEK 0.66 consensus estimate, but down from SEK 1.48 in 1Q17. H&M noted that profit development in the quarter was stemmed by weak sales growth as well as by increased markdowns. Management expects sales from new brands and online sales in FY18 to grow by more than 25%. For the full year, the group expects to “achieve a somewhat better result” compared to FY17. Please Login to read the full report. Not a member? Register for a free user account. This document was generated for Other research you may be interested in: US Consumer Tracker: Consumers Settle in to Winter HabitsJanuary 2024 Leading Indicators of US Retail Sales: Higher Inflation Hints at Weakened Retail Sales To Start the YearInnovator Profile: bops—Enhancing Retail Efficiency Through Collaborative Inventory IntelligenceUS Store Tracker Extra, July 2023: Closures by Christmas Tree Shops Push Total Closed Space to 68 Million Square Feet