H&M reports steepest sales growth in three years
STOCKHOLM : Sweden's H&M, the world's second-biggest fashion retailer, yesterday reported its steepest sales growth in three years in its third quarter.
Sales were up 8 per cent in June-August from a year earlier. It was the fifth consecutive quarterly rise, and matched the 8 per cent recorded in the third quarter of 2016.
"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.
H&M's shares however fell 2 per cent in early trade.
Analysts at Berenberg, who have a sell recommendation on the shares, said growth matched expectations.
They however also said that, given growth of 12 per cent in June, as reported by H&M, it probably slowed to around 6 per cent across July and August.
They also noted that in the year-ago period, sales were disrupted in several key markets due to troubles implementing a new logistics system.
Net sales for the retailer rose more than expected in the third quarter, by 12 per cent to 62.6 billion Swedish krona (S$8.9 billion).
The stock has soared 51 per cent this year on hopes that H&M is getting back on track after years of falling profits due to slowing sales, and investments to adapt to tougher competition and changing shopping habits. - REUTERS
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