Tuesday 22 July 2014

H&M says June sales off to good start

Published 18/06/2014|08:03

  • Share
People stands outside a security barrier and look at dresses in a H&M store on November 23, 2010 in Stockholm, after the launch of a line by Lanvin's Israeli designer Alber Elbaz in 200 H&M stores worldwide, the latest of a string of tie-ups between the Swedish retailer and top fashion designers. For the operation Elbaz designed cocktail dresses with rose-patterning or yellow frills and sharp-tailored party frock numbers, with a democratic price tag of 99 to 149 euros (149-199 dollars), as well as blouses for 19.90 euros. AFP PHOTO / JONATHAN NACKSTRAND (Photo credit should read JONATHAN NACKSTRAND/AFP/Getty Images)

Hennes & Mauritz, the world's second-biggest fashion retailer, said sales in June had gotten off to a good start after reporting second-quarter profits in line with analyst forecasts.

  • Share
  • Go To

The Swedish budget fashion company, which competes with the world's biggest clothing retailer Zara-owner Inditex, said on Wednesday its spring collections had been well-received and cited strong sales for other H&M brands such as COS, & Other Stories and H&M Home.

It posted a pretax profit of 7.6 billion Swedish crowns ($1.1 billion) for the March through May period, matching a mean analyst forecast in a Reuters poll.

The group, which has been broadening its product offering and investing in its online business having gotten off to a slow start compared with some rivals, posted a gross margin in the quarter of 60.8 percent - just below an analyst forecast for 61.2 percent.

"We are seeing some of our long-term investments starting to generate revenues such as & Other Stories and our online store in the U.S. and in France," Chief Executive Karl-Johan Persson said in a statement, adding the company would continue to make long-term investments.

H&M, which reported quarterly sales last week, said June sales were off to a good start after a near 20 percent increase in May. It did not provide further details about its June sales.

Last week, Inditex said its sales rose 11 percent in local currencies between Feb. 1 and June 8, accelerating from the 8 percent it recorded in the year to Jan. 31.

H&M said it would launch an extended shoe range this autumn. It plans to roll out in 8 to 10 online markets in 2015 after starting up sites in Spain, Italy and China this autumn.

Read More




Meet, chat and connect with
singles in your area


Meet Singles Now



Now available on

Editors Choice

Also in Business