Sweden's H&M announced second-quarter sales that were steady in local currency on Thursday, slightly underperforming expectations as exceptionally chilly weather restrained demand.
After H&M warned already in late March that cold weather in many important regions was reducing demand for spring and summer designs, analysts surveyed by Reuters predicted an average increase of 1% year over year.
The local currency turnover was constant, which represents a decline from the previous quarter and from 2022.
"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" H&M said in a statement.
In contrast to a predicted 7% increase, net sales at Inditex (ITX.MC), the company that controls the second-largest fashion retailer in the world after Zara, increased by 6% to 57.6 billion crowns ($5.36 billion).
Sales in June, the first month of its third quarter, started off well, according to H&M.
In 2022, the group started a savings push in response to a rise in costs that it had only partially passed on to financially challenged clients. Additionally, the firm's sales growth had lagged behind that of Inditex and online competitors like the rapidly growing Shein.
In weak markets, Inditex has performed better than H&M. Last week, it reported net sales increases of 13% in the quarter ending in April and 16% in the quarter ending in May.
The entire quarterly profits report for H&M, whose single-largest market is Germany, is scheduled to be released on June 29.
(Source:www.reuters.com)
After H&M warned already in late March that cold weather in many important regions was reducing demand for spring and summer designs, analysts surveyed by Reuters predicted an average increase of 1% year over year.
The local currency turnover was constant, which represents a decline from the previous quarter and from 2022.
"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" H&M said in a statement.
In contrast to a predicted 7% increase, net sales at Inditex (ITX.MC), the company that controls the second-largest fashion retailer in the world after Zara, increased by 6% to 57.6 billion crowns ($5.36 billion).
Sales in June, the first month of its third quarter, started off well, according to H&M.
In 2022, the group started a savings push in response to a rise in costs that it had only partially passed on to financially challenged clients. Additionally, the firm's sales growth had lagged behind that of Inditex and online competitors like the rapidly growing Shein.
In weak markets, Inditex has performed better than H&M. Last week, it reported net sales increases of 13% in the quarter ending in April and 16% in the quarter ending in May.
The entire quarterly profits report for H&M, whose single-largest market is Germany, is scheduled to be released on June 29.
(Source:www.reuters.com)