H&M June sales miss estimates

Europe’s second-biggest clothes retailer plans to open 350 new stores this year

Hennes and Mauritz reported June sales that missed estimates after growth slowed in the latter part of the month. Photo: Bloomberg

Hennes and Mauritz reported June sales that missed estimates after growth slowed in the latter part of the month. Photo: Bloomberg

Mon, Jul 15, 2013, 09:28

Hennes and Mauritz, Europe’s second-biggest clothes retailer, reported June sales that missed estimates after growth slowed in the latter part of the month.

Revenue at stores and operations open at least a year rose 3 per cent compared with the same month a year earlier, the Stockholm-based company said in a statement today.

The monthly growth was the strongest since September, yet was less than the 4.1 per cent expected in a SME Direkt survey.

“We believe the improved performance in comparison to previous months may be discount-driven after a disappointing spring/summer season led to a higher level of inventory,” analyst Allegra Perry at Cantor Fitzgerald said in a note.

H&M rose 0.5 per cent to 238.30 kronor at 9.12am in Stockholm trading, largely mirroring the broader market.

H&M’s total sales advanced 13 per cent last month, compared with a predicted 13.5 per cent increase.

When reporting second- quarter earnings June 19, the retailer said revenue from June 1 to June 17 rose 14 per cent.

Today’s numbers therefore suggest a slowdown in the second half of the month, Ms Perry said.

H&M said it had 2,926 stores at the end of June, up from 2,596 a year ago. It plans to open 350 this year.

Bloomberg