Hennes & Mauritz AB’s sales narrowly missed analysts’ estimates as households across Europe grapple with a cost-of-living crisis amid rising prices for everything from energy to groceries.
Ales in local currencies fell 4 percent in the three months to August, the company said in a statement Thursday. Analysts had expected a 1.4 percent decline.
The company, one of the world’s largest fashion retailers, had almost recovered from the Covid-19 pandemic when Russia invaded Ukraine and is now struggling with rising inflation and a more pessimistic outlook for the broader economy. In June, H&M said it would take a 2 billion kroner financial hit for closing its stores and exiting Russia.
Sales got off to a poor start to the quarter but saw some improvement due to higher interest in the fall collections than last year. Total sales were 57.45 billion kroner ($5.36 billion).
The drop in sales contrasts with Zara-owner Inditex SA, which on Wednesday reported a 25 percent jump in sales for the first half and higher-than-expected profit after rising prices. H&M has said it is trying to strengthen its market position by not raising prices to the same extent as its competitors.
The stock is down 37 percent year-to-date and is currently trading near its spring 2020 coronavirus-related lows. At that time, the company had closed up to 80 percent of its branch network.
https://www.independent.ie/business/world/h-and-m-sales-miss-estimates-but-retailer-signals-a-better-autumn-41990859.html H&M sales miss estimates but retailer signals better autumn