H&M October like-for-like sales unexpectedly drop

STOCKHOLM – Hennes & Mauritz, the world’s second-largest fashion retailer, reported an unexpected 5 percent fall in comparable sales in October as it suffers from weak demand in crisis-hit Europe.

The fall in October sales in stores open for more than a year in local currencies compared with the average forecast in a Reuters poll for a slight rise of 0.4 percent.

Total sales, which includes new store openings, rose 4 percent, less than the 9 percent forecast in the poll. October is the second month of its fiscal fourth quarter.

“It’s a very weak figure,” said Cheuvreux analyst Daniel Ovin of October sales, which on a like-for-like basis came after a rise of 6 percent in September.

“I think the explanation lies in the fact it’s been an unusually warm autumn. There is also a negative calendar effect, and we know consumers have been weak for some time.”

October total sales were the weakest since April, when they were down 1 percent. In September, total sales grew 15 percent.

H&M has most of its business in Europe, where a sovereign debt crisis and austerity measures have dampened demand.

Apparel sales in Germany, H&M’s single biggest market, were down 4 percent in October, according to industry data.

H&M said it had 2,715 stores at the end of October, up from 2410 at the end of the same month last year.


Posted on November 16, 2012, in Other. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: