Implode-o-Meter News - H&M and Ferragamo Pour Cold Water On Holiday Retail Season Hype

Shares of Stockholm-based Hennes & Mauritz, better known as H&M, the world's second largest clothing retailer after Inditex (owner of Zara), crashed 14.8% after reporting an unexpected drop in fiscal 4Q 2017 sales. Sales missed both consensus and company estimates with the resulting fall in H&M's share price was the steepest intra-day decline since 11 September, 2011.Â
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The news from H&M, along with a warning from Italian luxury goods maker, Ferragamo that it could no longer confirm profits targets for the next three years, helped drag down the European retail sector as a whole. The Stoxx Retail sector index declined more than 2%, taking its year-to-date decline to 3.5%, the worst sector performance in 2017. H&M is down more than 30% this year, while Dixons Carphone is down 47%, Carrefour down 24% and Inditex down 6.3%, Bloomberg reports. The broader Stoxx 600 as a whole is up 7.5% year-to-date.

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H&M and Ferragamo Pour Cold Water On Holiday Retail Season Hype