H&M the Swedish fast fashion giant reported a sales flatline in its latest quarter post Zara owner Inditex, its biggest rival had a stronger performance.
The retailer stated that the net sales in local currencies were flattish over June to September compared to the same period in the previous year.
Pertaining to the volatile weather conditions across Europe, the weaker-than-expected quarterly sales report update suggests the chain’s struggle to lift sales in recent months.
But the retailer also stated that the net sales in Swedish Krona increased by 6 percent to £ 4.4 billion (SEK 60.9 Billion) year-on-year.
Excluding stores in war-hit Russia, Belarus and Ukraine, sales rose by 8 per cent.
The retail chain stated that “Profitability and inventory levels have been prioritised in the latest quarter,” suggesting its broader financial performance had been prioritised over sales during the latest period.
The update came after the retailer’s biggest rival Inditex owner of Zara, Pull & Bear and Bershka posted a big leap in its profits and and sales. The business accounted for a sales growth of 13.5 per cent over the latest half-year to £ 14.6 billion (€ 16.9 billion) with growth both in stores and online. This was a result of the brand’s strategy to slow down price increases to customers, after efforts to reduce cost inflation.
The update comes to investors ahead of a nine-month financial report set to be released later this month.
