2018-02-22 —

H&M Hennes & Mauritz AB all but admitted it was a disaster this week, saying that same-store sales would likely only see growth in 2019. The Swedish retailer at its first ever capital markets day said that 2018 was "expected to remain challenging," but "that there are good opportunities for a somewhat better result for the full year compared with the previous year."

This promise comes despite the fact H&M continues to battle through high levels of inventory and sub-par styles on sales floors around the world, which will weigh on profits this year. In short, the promise by management to return to growth is unlikely to be met.


it is Zara that has been the rival that H&M cannot shake. The Spanish retailer has seen double-digit sales growth while competitors have languished. It has an advantage in following the whims of fashion as it's able to move the latest designs to the rack within two weeks.

It has also highly integrated its online and physical stores, this year debuting a popup store in London designed primarily for ordering and collecting of online orders.

Hedge funds are accordingly shorting the heck out of H&M.

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