// H&M reports slightly smaller than expected rise in quarterly sales
// Admits that Black Friday later-than-usual date this year had a negative effect
// Net saes rose 9% to 61.7bn crowns (£4.9 bn), as opposed to forecast 10%, but in local currencies sales grew 5%
H&M has said it was on track to deliver an increase in full-year profits for the first time in four years after recording quarterly sales growth despite slightly missing analyst forecasts.
Net sales in in fourth quarter ending November 30 rose nine per cent year-on-year to 61.7 billionn crowns (£4.9 bn), and in local currencies the sales growth was five per cent.
However, analysts had on average forecast a 10 per ent rise to 62 billion crowns, according to Refinitiv SmartEstimates.
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H&M conceded that sales during the period were adversely impacted by the later timing of Black Friday compared to 2018.
When adjusted to factor in the later Black Friday, H&M said quarterly sales grew 10 per cent, or six per cent in local currencies.
“Sales development for the quarter compared with the previous year was affected by calendar effects, mainly because Black Friday this year fell a week later,” H&M said.
“Therefore, some of the big Black Friday online sales will not be recognised until December.”
The Swedish fashion giant added it was on track to book its first full-year profit growth in four years after it increased online investment and new store concepts over the past few years, while it is also reining in the amount it sells on discount.
Its full-year report for the year to November 30 will be published in January.
H&M Group comprises H&M, Cos, Monki, Weekday, & Other Stories, Cheap Monday, H&M Home and Arket.
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