Announcing financial results for this year’s third quarter (1 June – 31 August), Swedish fast-fashion brand H&M shared thatit saw a surge of 32 per cent in the online sales across 47 markets.
During Q3, the apparel brand’s sales, including VAT, surged by nine per cent to SEK 64,800 million. On the other hand, sales without VAT were also up by nine per cent, while sales in local currencies witnessed a rise by 3 per cent and one per cent without and with VAT respectively.
Additionally, the fashion label also announced its nine-month report that saw the apparel group’s sales including VAT increasing by 3 per cent to SEK 178,817 million, as recorded in the first 9 months of the current financial year (1 December 2017 – 31 August 2018). The sales without VAT were also up by 3 per cent to SEK 153,986 million, while in local currencies, sales including VAT were up by 1 per cent.
Karl-Johan Persson, CEO, H&M said in the company’s quarterly financial report that, H&M was in a thrilling transitional period, as the fashion sector was continuously going through constant changes. “Our transformation work has contributed to a gradual enhancement in sales development with an increased market share in most markets during the third quarter, especially in Sweden, Eastern Europe, China, Germany and Russia,” Persson added.
Notably, H&M’s best performer in the third quarter was its online business and the retailer has announced to expand its online presence, which is currently available only in 47 markets.
Furthermore, the company blamed the problems that emerged during the implementation of new logistics systems in the US, France, Italy and Belgium region for the negative store sales in these four locations.
As per the Q4 growth plans, H&M will work on enhancing its shoppers’ experience, sustainable operations, and high-end product lines to be offered at a pocket-friendly price bracket.