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Unfavourable weather affords a mild increase in H&M sales


While H&M increased sales in its fourth quarter, its results were less than predicted, which the Swedish fashion chain has blamed on unseasonably warm weather.    

Year-on-year, sales rose by 4% at H&M, the world’s second biggest fashion retailer. Although profitable, this is below the mean average that was predicted for the company, based on 20 estimates compiled by Bloomberg

H&M blamed unseasonably mild weather in Europe, including Germany where it generates around 20% of its sales, and North America for the lower-than-expected figures, in a similar fashion to several other apparel retailers over the past year.    

This is in stark contrast to H&M’s rival Inditex, which reported a 15% increase in sales in local currency terms from November 1 to December 3. 

This marks a continued decline for H&M; this is the second time this year that the company's sales have fallen below 10% Its gross margin at the end of its third quarter this year narrowed to 55.9%, its lowest point since 2004. Sales were hampered by price markdowns, as well as the unfavourably strong dollar which harmed its overall figures.

Published on Tuesday 15 December by Philip Gallagher

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