The world’s largest retailer of clothing, H&M Group, has reported weaker-than-anticipated revenues for the most recent quarter as cold weather dampened demand.
The retailer did note, however, that June trading had gotten off to a good start amid bettering market circumstances, which boosted shares in early trade.
It informed investors that net sales for the three months ending 31st May were “flattish compared with last year” and that revenues totaled (£ 4.24 billion; SKR57.61 billion).
After H&M had already signalled in late March that demand for spring and summer fashions was being hindered by cooler weather, analysts had projected the business would announce a 1 per cent sales growth for the time.
In a statement, H&M said, “Sales in the second quarter were affected by unfavourable weather conditions compared to the corresponding period last year on several of the H&M group’s large markets. June has got off to a good start.”
It comes a week after Spanish rival Inditex, which owns Zara, reported a 13 per cent increase in sales during the year to April while ignoring challenges on consumer budgets (up 15 per cent with currency movements stripped out).
Since 1st May, Inditex has reported double-digit sales growth, up 16 per cent on a constant currency basis, while it noted that “spring/summer collections continue to be very well received by our customers”.
