Stockholm — H&M plans to cut prices further as supply problems hamper the Swedish company’s ability to respond to fast-changing fashion demand, swelling its stockpiles of unsold clothing. The world’s second-biggest fashion retailer after Inditex on Thursday reported a further drop in profit for the quarter to the end of May and said it would now be tougher to reach its target of a "somewhat better" result for 2018. "The first half of the year has been somewhat more challenging than we initially thought, but we believe that there is a gradual improvement and that we will see a stronger second half," CEO Karl-Johan Persson said. However, he told analysts that supply disruptions would continue to hurt its sales in the third quarter as it upgraded its logistics software in a move to speed up deliveries. H&M shares, which have lost nearly two-thirds of their value since record highs in 2015, initially fell 4% but turned positive to trade 1% higher by 12.58pm GMT. The shares are by far th...

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