An H&M retailer in Beijing, China. Shutterstock.
Gross sales at vogue retailer H&M grew lower than anticipated within the three months to the tip of August, staying beneath pre-pandemic ranges as restrictions saved buyers away from shops.
The Swedish group stated on Wednesday gross sales grew 9 % from a yr earlier, or 14 % 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 %.
Internet gross sales on the world’s second largest vogue retailer have been down 11 % from the identical quarter of 2019 earlier than the pandemic, once they have been 62.6 billion crowns.
H&M, whose shares have been down 3 % in early commerce, stated the pandemic continued to hit gross sales, with appreciable variation between markets.
“Lockdowns and restrictions have continued to hamper improvement, notably in Asia. Nonetheless, 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 yr earlier as a result of pandemic, with gross sales 4 % larger than in 2019. However gross sales slowed in the direction of the tip of the quarter.
H&M’s restoration has lagged market chief Inditex, the proprietor of Zara, which on Wednesday reported a 7 % rise in Might-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 quickly closed on the finish of the quarter, down from about 180 firstly, with continued restrictions in most markets leading to lowered footfall.
By Anna Ringstrom; editors: Niklas Pollard and Edmund Blair
When the quick vogue giants announce quarterly gross sales on Wednesday, Inditex is seen again to pre-pandemic ranges, whereas H&M nonetheless has some method to go.
https://www.businessoffashion.com/information/retail/hm-sales-still-lag-pre-pandemic-levels-as-restrictions-bite | H&M Gross sales Nonetheless Lag Pre-Pandemic Ranges as Restrictions Chew