H&M sees efforts to control stock weigh on sales (opens original article in a new tab)

H&M reported sluggish sales due to efforts to control stock, which sometimes left stores unable to meet demand, but the company expects long-term profitability improvements.

• H&M reported 3% lower sales for the first half of its financial year compared to the same period last year.
• Efforts to tighten stock management led to some stores being unable to meet shopper demand.
• H&M's CEO acknowledged that tighter inventory management affected their ability to meet demand but expects long-term profitability improvements.