H&M Q1 Profit Dips As Company Overhauls Logistics System

PARIS — Hennes & Mauritz AB on Friday reported a 41 percent drop in first quarter profit as the company continued to invest in overhauling its logistics system, and reported it is selling more clothing at full price. Adding to the steep percentage decline, the same period last year was boosted by a one-off tax measure in the U.S. “Our ongoing transformation work has contributed to stronger collections with increased full- price sales, lower markdowns and increased market shares,” said Karl-Johan Persson, chief executive officer. Profit for the Dec. 1 to Feb. 28 period was 803 million Swedish kronor, or $86.55 million as the company replaced its online platform in Germany; the transition weighed on sales in the country over the period.  The Swedish fast-fashion retailer, which is undergoing a company-wide revamp to improve online services, previously reported a 4 percent rise in first-quarter sales in local currencies to 51.01 billion Swedish kronor, or $5.49 billion, with a positive currency rate effect. The holiday period was a challenge for many apparel companies that got sucked into cutting prices at the end of the year, which ate into margins. Spain-based Inditex, owner of Zara, meanwhile, is pushing ahead of rivals in the digital sphere, implementing high-tech sales

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