STOCKHOLM, Feb 14 (Reuters) - H&M, the world’s second-biggest fashion retailer, said on Wednesday it expected slightly higher results this year compared to 2017 and forcast its physical stores would return to to comparable sales growth from next year.
“The physical stores are expected to return to comparable positive sales development from 2019 onwards, and with considerably lower price markdowns relative to sales compared with 2017,” Chief Executive Karl-Johan Persson said.
“Overall, this is expected to lead to good increases in profit,” he said in a statement.
The group, which is controlled by the Persson family, is holding its first-ever capital markets day on Wednesday in a bid to assuage investors calling for more detail on performance and strategy.
A success story for decades, H&M has in recent years seen sales growth stall as it struggles to keep up with digitalisation and shoppers’ move online, and to fend off increased competition in its core budget segment.
Reporting by Anna Ringstrom and Helena Soderpalm; editing by Niklas Pollard