Swedish fashion giant Hennes & Mauritz (H&M) posted fourth-quarter pretax profit below expectations today as higher costs and a weaker outlook sending shares lower.
H&M reported a pretax profit of 4.3 billion crowns (€464 million) in the fourth quarter, shy of analysts' forecasts of 4.6 billion crowns (€474 million).
H&M unveiled a one-off collection by British designer Stella McCartney during the fourth quarter, but the suits-to-underwear retailer was hit by warmer-than-usual weather in Europe for much of the autumn.
The gross margin for the period was 60 per cent against a forecast of 60.3 per cent and 59.9 per cent a year earlier.
December sales were up 14 per cent and like-for-like sales, excluding new stores and those closed, rose 4 per cent over the month, the firm said.
US rival Gap - which runs Banana Republic, Old Navy and its namesake stores - saw like-for-like sales fall 9 per cent in December.