Successive quarterly jumps is what every retailer aims for and that’s what H&M has been doing for some time now!
By recording its highest sales growth in 3 years in Q3 of the current fiscal, in local currency terms, the Swedish fashion retailer has clocked its fifth consecutive quarterly rise.
With hotter summers, the retailer’s summer collection has been received well and also the sales before currency fluctuations were up by 8 per cent in June-August from a year earlier.
“Well-received summer collections and increased market share confirm that the H&M group is on the right track with its transformation work,” H&M said in a statement.
However, the company’s growth seems to have slowed down to 6 per cent in the months of July and August as against a 12 per cent increase in sales in June.
Reportedly, H&M’s net sales surged by 12 per cent to clock 62.6 billion Swedish crowns (US $ 6.5 billion) – more than what analysts had predicted (61.9 billion Swedish crowns).
H&M’s shares, however, slumped by 2 per cent in early trade much in line with analysts’ expectations.
The fast fashion retailer also saw its stock go up by 51 per cent – distinctly indicating that it is coming back on track after years of receding profits.
The retailer might still have not reached the success of its 2015 peak, but has been investing in transformation of physical stores and online portal as well as expansion, which it expects will yield better results for the company.