Advertise with fastmoving.co.za
 
 

H&M, whose main rival is market leader Inditex, says net sales excluding VAT were up 10% versus expectations of an 8% rise.
H&M, whose main rival is market leader Inditex, says net sales excluding VAT were up 10% versus expectations of an 8% rise.

Three quarters in a row of sales growth for H&M

RETAILER NEWS

By Edmund Blair - Mar 15th, 14:26

Sweden’s H&M, the world’s second-biggest fashion retailer, posted local-currency sales growth for its fiscal first quarter that matched analysts’ forecasts, on Friday, while net sales were slightly higher than expected. 

Local-currency sales including VAT in the December-February period rose 4% from a year earlier, in line with the mean forecast in a Reuters poll of analysts.

That was the third straight quarter with rising local-currency sales.

H&M, whose main rival is market leader Inditex, said in a statement net sales excluding VAT were up 10% to 51.0-billion krona ($5.49bn) versus expectations for an 8% rise to 49.9-billion.

The company, which is due to publish its full first-quarter earnings report on March 29, did not comment on the figures.

H&M has seen profits shrink and inventories bank up in recent years due to slowing footfall at its core brand's stores in the face of a shift online and mounting competition, as well as difficulties in reacting fast enough to demand swings.

It is investing heavily in logistics, digital technology and store concepts, and is reviewing its mix of stores and brands, but analysts have not been convinced the company is back on track.

Inditex, the owner of Zara, has outperformed rivals for years but investors have started to fret about slowing sales growth at the group. It reported this week sales growth of 7% for February and the first week of March, the start of its financial first quarter.
Business Live 

Read more about: retailer | retail | h&m | fashion. sales | business | brands

Related News

How retailers can add value for consumers in turbulent economic times
25/03/2019 - 15:51
For the most part, it has been a dismal year for South African retailers; elevated household debt, higher fuel prices and an increase in value-added tax squeezed consumer spending. However, Ackermans, South Africa’s longest standing value retailer, performed well over 2018 reporting growth of just over 10% which is three times more than the industry benchmark.

Confusion around best-before dates causing unnecessary waste
25/03/2019 - 11:14
Confusion around best-before dates is widespread, causing unnecessary food waste. And in a country that's already food insecure, binning good food is not only unconscionable, it's plain wrong.

Watches of Switzerland sets its sights on more US acquisitions
25/03/2019 - 09:38
Watches of Switzerland expects to make further acquisitions in the US, which it first entered in 2017 with the purchase of jeweller Mayors, its CEO said.

Load shedding threatens jobs, economic recovery, says consumer body
22/03/2019 - 13:31
Load shedding, which has been escalated to Stage 4, is posing a significant risk to economic recovery, the Consumer Goods Council of South Africa said in a statement, as rotational blackouts continued to grip the country.

Pick n Pay introduces blood oranges to its fresh produce offering
22/03/2019 - 10:19
Fruit lovers no longer have to travel to Europe to taste the goodness of blood oranges. Pick n Pay has added rare blood oranges to its fresh produce offering making it the first retailer to offer this unique fruit to customers.