An H&M retailer in Beijing, China. Shutterstock.
Gross sales at style retailer H&M grew lower than anticipated within the three months to the top of August, staying under pre-pandemic ranges as restrictions saved buyers away from shops.
The Swedish group stated on Wednesday gross sales grew 9 p.c from a 12 months earlier, or 14 p.c in native forex phrases, to 55.6 billion crowns ($6.46 billion). Analysts polled by Refinitiv on common forecast web gross sales development of 14 p.c.
Web gross sales on the world’s second largest style retailer have been down 11 p.c from the identical quarter of 2019 earlier than the pandemic, after they have been 62.6 billion crowns.
H&M, whose shares have been down 3 p.c in early commerce, stated the pandemic continued to hit gross sales, with appreciable variation between markets.
“Lockdowns and restrictions have continued to hamper growth, significantly in Asia. Nevertheless, as restrictions have been eased, gross sales in retailer have picked up in lots of markets whereas on-line gross sales have continued to extend,” it stated.
H&M returned to revenue in its April-June quarter from a loss a 12 months earlier because of the pandemic, with gross sales 4 p.c greater than in 2019. However gross sales slowed in direction of the top of the quarter.
H&M’s restoration has lagged market chief Inditex, the proprietor of Zara, which on Wednesday reported a 7 p.c rise in Could-July gross sales in comparison with the identical interval in 2019.
H&M, which is because of publish its full fiscal third-quarter earnings report on Sept. 30, stated its restoration continued with extra full-price gross sales and good price management.
It stated about 100 shops have been briefly closed on the finish of the quarter, down from about 180 in the beginning, with continued restrictions in most markets leading to diminished footfall.
By Anna Ringstrom; editors: Niklas Pollard and Edmund Blair
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H&M Lags Zara-Proprietor Inditex in Race to Regain Misplaced Gross sales
When the quick style giants announce quarterly gross sales on Wednesday, Inditex is seen again to pre-pandemic ranges, whereas H&M nonetheless has some solution to go.