Fashion retailer Hennes & Mauritz reported fiscal first quarter revenues that fell 1.7% on a year earlier, while its EBITDA (earnings before interest, tax, depreciation and amortization) fell 33.8% and was 2.4% below expectations according to S&P Global Capital IQ figures. A key problem appears to have been inventory management, with a 6.9% rise on a year earlier.

Panjiva data shows that the inventory increase came despite a scaling back of purchasing, with U.S. seaborne imports having fallen by 13.9% on a year earlier.

Chart shows U.S. seaborne imports associated with Hennes & Mauritz. Source: Panjiva

The slowdown has been particularly marked in imports of t-shirts (HS 6109, down 32.1%) and sweaters (HS 6110, off 28.9%). The cut in suppliers has been common across H&M’s suppliers, with 30.0% of products sourced from Bangladesh and 26.8% from China.

Chart segments U.S. seaborne imports associated with Hennes & Mauritz by product (HS-4). Source: Panjiva