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Cold start to 2018 hits H&M profits in ‘transitional year’

Swedish fashion giant Hennes and Mauritz (H&M) saw its profits plummet once again after unusually cold weather in key European markets brought sales of spring garments down, the Swedish retail giant said Tuesday as it released first quarter results.

Published: 27 March 2018 10:36 CEST
Updated: 27 March 2018 12:09 CEST

Cold start to 2018 hits H&M profits in 'transitional year'

An H&M store in Stockholm. Photo: Tomas Oneborg/SvD/TT

Net profits for the three months from January were down 44 percent to 1.37 billion Swedish kronor (135 million euros, $168 million) from 2.46 billion this time last year.

In Germany, H&M's main market, sales were down six percent. In France, the high-street fashion giant's fourth market, they plunged 10 percent.

“The start of the year has been tough,” CEO Karl-Johan Persson said in a statement.

“The high level of clearance sales combined with unusually cold winter weather had a negative impact on the sales of the spring garments,” he added.

READ ALSO: H&M shores up defences as internet threatens

H&M's share price plunged 6.3 percent in Tuesday trading on the Swedish stock market following the earnings announcement, dropping to 119.48 kronor per stock, its lowest level since 2005.

The company, one of the hardest hit by what analysts have termed the “retail apocalypse” sparked by the online shopping revolution, is doing its utmost to ride out the storm.

“2018 is a transitional year for the H&M group, as we accelerate our transformation so that we can take advantage of the opportunities generated by rapid digitalisation,” Persson said.

As it teams up with social media giants for a better digital presence, the Swedish group says it expects its online sales to grow more than 25 percent in 2018.

“We take a long-term view that together with our knowledge and experience enable us to navigate through times such as this,” Persson added.

READ ALSO: H&M predicts challenges ahead for fashion industry

How to avoid falling victim to tax scams in Sweden

Anyone who earned more than 22,208 kronor last year received their tax returns digitally last week, marking the start of tax season.

That also means an expected peak in tax-related scams, Skatteverket warns.

Most of the scams are so-called phishing scams, meaning attempts to steal the victims’ personal information. Fraudsters may for example email a person, pretending to represent Skatteverket, and ask them for, among other things, their banking details.

“We’re seeing these in all channels. They use fake emails, SMS, letters and in some cases even phone calls. It is particularly common in tax declaration times – just when we’re about to send out the tax returns, the e-service opens and it’s possible to declare – but above all when it’s time for tax rebates,” Jan Janowski, a Skatteverket expert, told Swedish news agency TT.

A scam email might for example state that you’re entitled to a tax rebate and that you should click a link to receive it. Don’t click any links, open any attachments or reply to the message. Skatteverket advises that you immediately delete the email or text message.

Another common scam is that you receive a text message claiming to be from Skatteverket, telling you that you owe them money and you need to log in to calculate the amount. The website you’re urged to log in via does not belong to Skatteverket. Don’t click the link.

The agency stresses that it never asks people for their banking details. The exception is that you may be asked for your bank account information if you log into Skatteverket’s website to declare your taxes, but that always first requires you to log into the site.

To receive your tax rebate, you need to inform Skatteverket of your bank account number. You do this not by clicking a link in an email or SMS, but by logging into their website using a digital ID, for example BankID, and submitting your details. Only do this on your own initiative. If someone calls you and asks you to log in with your BankID during the phone call, don’t do it. That’s another common scam.

Skatteverket will also never call you to ask for your bank account or credit card number.

It will be possible to declare your taxes from March 19th. You’ll receive any tax rebate you’re owed by mid-April or early June, depending on when you submit your tax return. These are the dates when fraudsters are likely to attempt the most scams.

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