H&M Group has reported stagnant sales in recent months as the fashion brand faces a slowdown in consumer spending and the knock-on impact of closing stores in Russia.
Net sales decreased by 4 per cent in local currencies between September and November 2023 compared to the same period in the previous year, coming to £ 4.8 billion.
Nonetheless, compared to the 10 per cent decline the company had predicted it would see in September, the quarterly sales update indicated progress.
As demand for autumnal lines was weakened by the abnormally hot weather throughout European markets, H&M said it expected sales to plummet.
According to Jefferies analysts, the better performance can be attributed to a return to cooler temperatures in October and November following September’s very warm temperatures.
However, the company has lagged behind competitor Inditex, which this week reported “strong” Christmas sales.
The owner of Pull&Bear, Bershka, and Zara, who is Spanish, reported that sales increased by 14 per cent in the six weeks ending on December 11 and that customers were “well received” by the autumn/winter assortment.
Due to the conflict in Ukraine, H&M had to halt operations in Belarus and Russia, which negatively impacted its business.
