H &M has hinted that its second half year results could be better than the negative results of the first after it announced its latest sales figures yesterday.
Sales for the fashion retailer increased by 10 per cent in local currencies during July compared to the same time last year, exceeding the eight per cent it expected.
Earlier this year, the Swedish company was struggling due to the strength of the dollar and the way it purchases most of its materials in dollars – hence putting pressure on its costs.
Bad weather was also blamed for lacklustre demand for clothes – especially in Germany, one of H&M’s biggest markets.
As a result, its pre-tax profits dropped 17 per cent in the three month period to March 31.
However, H&M chief executive Karl-Johan Persson said he was expecting a better second half of the year compared to the first.
As of July 31, H&M stated it had a store portfolio of 4105 outlets worldwide, compared to 3649 stores at the same time last year.
The retailer’s financial report for the period from December 1 to August 31 will be published at the end of September.