H&M sales continue to slow as Q1 figures miss expectations


Fashion powerhouse H&M has reported lower than expected sales in its first quarter, as like-for-like sales continue to slow.

In the period from December 1 to February 28, H&M reported flat sales in local currencies, while sales excluding VAT dropped 1.6 per cent from 47 billion SEK (£4.12 billion) to 46.1 billion SEK (£4.05 billion).

This comes in well below Reuters’ mean forecast of a 1.2 per cent growth.

It follows a 32 per cent drop in net profits in the previous quarter, alongside warnings last month that “2018 is expected to remain challenging”.

“H&M’s sales in comparable stores are expected to remain negative with a gradual improvement during the year,” H&M continued.

It added that sales at the beginning of the year were likely to be hit by heavy markdowns but expected these to be offset by an online sales boost.

H&M is set to publish its full quarterly report on March 27.

Click here to sign up to Retail Gazette‘s free daily email newsletter



Please enter your comment!
Please enter your name here