H&M attributes the drop in sales to the September sun
Fashion chain H&M has warned of falling sales as sunny September hits demand for autumn clothing.
The Swedish group said it expects sales this month to be down 10 percent from the same period last year as it faces “unusually hot weather in several of the company’s European markets.”
But the update drew comparisons with archrival Inditex, which owns Zara and reported a 14 percent rise in sales between Aug. 1 and Sept. 11.
“If your competitor’s sales are up basically 14% over the same time, that says something, in my opinion,” said Vera Diehl, a fund manager at Union Investment, which owns shares in H&M and Inditex.
H&M’s update came a day after Asos said failure in July and August left it struggling to sell summer clothing. Despite the gloomy September update, H&M shares rose 4 per cent, or 6.3p, to 161p in Stockholm as it revealed profits between June and August rose from £66m to £345m .
It stayed true to its goal of increasing operating margins to 10 percent next year and said it was pressing ahead with its cost-cutting program.