As profit declines, H&M will have to slash prices for merchandise shifting

Fashion retailer H&M will have to cut prices further to help shift growing piles of unsold merchandise over the summer after another decline in quarterly profit, it said on Thursday. The Swedish company, which has seen profit fall in the past two years as fewer customers shop in its main H&M brand stores, said it would now be tougher to reach its target of a "somewhat better" group result for the year.

Pretax profit in the three months to the end of May shrank 22 per cent from a year ago to 6.01 billion crowns ($670 million),.

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