E Point Perfect – Interesting and beneficial content

H&M reports lower than expected sales as it struggles to compete with rival Zara


H&M reports lower than expected sales as it struggles to compete with rival Zara
H&M’s sales fell 4% while Inditex has been boosting revenue
// H&M sales slip more than expected over summer as the fashion retailer fell further behind rival Zara
// The Swedish retailer said demand improved in the final part of the quarter

H&M has posted lower-than-expected quarterly sales as it struggles to compete with rival Zara and consumers tighten their belts amid soaring energy and food bills.

The world’s second-biggest fashion retailer said third-quarter net sales were up 3% from a year earlier at £4.65 billion, lower than previous estimates by Refinitiv who had predicted a 5% rise for the June-August quarter.

Measured in local currencies, sales were down 4%.

“The third quarter got off to a weak start, in common with the industry in many of the group’s major markets,” H&M, which does the bulk of its business in Europe, said in a statement.

Subscribe to Retail Gazette for free

Sign up here to get the latest news straight into your inbox each morning

“Sales improved sequentially during the quarter, with a better start for the autumn collections than last year,” it added.

The performance substantially underperformed market leader Zara owner Inditex, which saw first-half sales and profits hit historic highs, both surging 24.5%.

Although the Spanish fashion giant’s growth pace slowed to 11% in the August 1 to September 11 period.

H&M, which launched its first furniture range for kids last month is set to publish its full third-quarter earnings report on September 29.

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


Source link >

Related posts

Mike Ashley’s Frasers bans ‘unproductive’ home working

Asos poaches Inditex exec for new womenswear director

Asos, Boohoo and Asda investigated by CMA over ‘greenwashing’ 

Royal Mail staff to strike in August and September over pay dispute

Wilko delays supplier payments to protect cash flow

H&M returns to Alibaba’s Tmall after Chinese boycott