Executive Summary

• H&M reported that total sales decreased by 2% year over year in local currencies in 4Q17, the period from September 1 to November 30, 2017.
• The company did not provide a new store growth percentage figure, unlike in previous trading update releases.
• Management stated that sales development in 4Q17 was significantly below expectations. Sales were negatively impacted by reduced footfall in brick-and-mortar stores and imbalances in parts of the H&M merchandise assortment composition.