H&M Boss 250 Million US Dollars To Rescue The Market Is Still Difficult To Restore The Downward Trend Of Share Prices

According to Xiaobian of world clothing and shoe net, fast fashion H&M's sales growth in December 2016 and January 2017 were significantly weaker than those of the group, which were 6% and 8% respectively, far from the sales growth target set by 10%-15% last year.

Hein Morris, the clothing giant H&M Hennes & Mauritz AB (HMb.ST), submitted to the Stockholm stock exchange in Sweden that the company's largest shareholder and chairman Stefan Persson has spent over 250 million dollars in the past two weeks to increase its holdings, so as to boost its father's creation, but now it is struggling.

SOK documents show that Stefan Persson bought 413 million 200 thousand shares of 1885583 shares in May 15th with a price of SEK 413 million 200 thousand.

In May 16th, it purchased 1762946 shares of the group with a total investment of SEK 386 million 100 thousand at a price of SEK 219.0214.

In May 17th, it purchased 1351471 shares of the group with a total investment of SEK 295 million 600 thousand at a price of SEK 218.7194.

Last week, Stefan Persson purchased two shares of the group's shares of 217.3866 kronor and 213.4786 Swedish kroner on May 10th and 11 respectively, with a total cost of 1 billion 77 million 200 thousand krona.

The total cost of the 5 increase is 2 billion 172 million 100 thousand kronor, or about 250 million US dollars.

Affected by the increase of major shareholders, the share price of Hennes & Mauritz AB, Hayne and Maurice group has increased by 2.2% over the past 5 trading days, but the stock closed down 13.85% on the end of the year to date on Thursday, so far, it lost far from the 11% increase of rival Inditex SA (ITX.MC).

Thursday reported 218.30 Swedish kronor, down 0.37%.

Stefan Persson and Karl-Johan Persson father and son

Inditex SA

And Hennes & Mauritz AB Hayne Maurice's performance in the open market also reflects the current operation trend of the two companies.

At the beginning of this month, Hennes & Mauritz AB Hayne and Maurice released 7% sales figures for April, that is, gaining market recognition, showing the market's anticipation.

Stefan Persson's son, Group CEO Karl-Johan Persson in the end of January annual report, the group's current fiscal year growth is expected to 10-15%, but from December to the present 5 months, the company did not achieve the expected lower limit for a month, Karl-Johan Persson had to admit that it is difficult to achieve expectations.

In February, sales of Hennes & Mauritz AB, Hayne and Maurice, including VAT, recorded a 1% decline, the first time in 2013 since March in four years.

The Hayne and Maurice group attributed the weak performance in February to the calendar effect. It said that in 2017 February, it was less than one day in the previous year. Even after excluding the calendar effect group, it claimed to have an increase of 3%, which is also far lower than the 6% expected by the market.

As of the first quarter of February 28, 2017, in the 2017 fiscal year ended February 28, 2017, sales of the Hayne and Maurice group, including VAT, amounted to 54 billion 369 million kronor, an increase of 7.4% over the 50 billion 624 million kronor in the 2016 fiscal year.

According to the data, the biggest competitor of Hayne Maurice group, Zara parent company and the world's largest clothing retailer, Inditex SA, India and India Group, recorded a record sales of 23 billion 310 million euros in the 2016 fiscal year ended January 31, 2017, an increase of 11.5% over the 20 billion 900 million euro of fiscal 2015, and sales of 10% in the same store or even 8.5% in the 2015 fiscal year. In February 1st, -3, 12, and 2017 fiscal year, the Group sales fixed exchange rate increased by 13%.

Acceleration of Indo Textile Group

The extremely weak 2016 was actually built on the erosion of competitors' share.

In the 2016 fiscal year, the largest apparel franchised retailer and the fast fashion giant Gap Inc. (NYSE:GPS) Guipu group's net sales totaled $15 billion 516 million, which was 1.8% less than that of the 15 billion 797 million fiscal year in fiscal 2015; while Japan's fast fashion brand Uniqlo Uniqlo, the largest clothing retailer in Asia, Fast Retailing Co. Ltd. (9983.T) (6288.HK), XXX group, recorded 1 trillion and 786 billion 473 million yen in the 2016 fiscal year ended August 31, 2016, an increase of 6.2% over the previous year, a sharp slowdown compared with the 21.6% increase in 2015 fiscal year.

In addition to eroding the growth rate of the three competitors, in 2016,

Many brands have gone bankrupt and reorganized.

As of April 30th, Hennes & Mauritz AB Hayne & Maurice group has 4474 stores worldwide, a 439 increase over the same period last year.

As demand for flagship brand H&M has declined, the group is accelerating the hatching of new brands that have the potential to take the successful footsteps of COS and Other Stories. The group has announced that it will enter the market's latest retail concept Arket this fall.

In addition to the world's first store in Regent Street in London Regent Street, the group has confirmed that second stores will be located in the Danish capital of Copenhagen within the year. Besides, Brussels and Munich will also open shops soon.

Hennes & Mauritz AB Hayne and Maurice group released the two quarter and interim results in the middle and late 6 months respectively.

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