Hennes and Mauritz (H&M), Europe’s second-largest clothing retailer, reported third-quarter sales yesterday that missed analyst estimates as a heat wave across parts of the region kept shoppers away last month.
Revenue excluding value-added tax rose to 28.8 billion Swedish kronor to the end of August, the group said yesterday. Sales at stores open at least a year declined 4 per cent in August, the company said. They had been expected to grow by about 1 per cent.
Germany, H&M’s biggest market, had the 12th-warmest August since 1891, while Spain and France also recorded above-average temperatures. The heat caused difficulty for fashion retailers at a time when they typically start introducing autumn ranges.
Next Plc said last week that sales in August and early September were “disappointing”.
“It was unhelpfully hot in August,” said Anne Critchlow, an analyst at Société Générale.
Total sales for the quarter gained 6 per cent, well below analyst forecasts. The number of outlets increased to 2,629 compared with 2,325 last year. The retailer has focused store expansion on Asia and the US to help offset a slowdown in European consumer spending.
– Bloomberg
