×
82
Fashion Jobs
PUMA
Executive, Marketing
Permanent · Hong Kong
SHISEIDO
Senior Manager, Supply Chain Management
Permanent · Hong Kong
SHISEIDO
Manager - Marketing, Shiseido Fragrance Division And dg Beauty
Permanent · Hong Kong
AESOP
Regional Training & Performance Manager
Permanent · Hong Kong
AESOP
Assistant Marketing Manager, Brand Partnership
Permanent · Hong Kong
AESOP
Regional Customer And Store Experience Manager
Permanent · Hong Kong
AESOP
Retail Consultant | Hong Kong And Macau
Permanent · Central
SHISEIDO
Contract Accounting Officer, Finance And Accounts
Permanent · Hong Kong
SHISEIDO
Manager - Business Planning, Ipsa
Permanent · Hong Kong
SHISEIDO
Manager - Ecommerce & CRM, Nars
Permanent · Hong Kong
PUMA
Executive, Key Account - Partner Store
Permanent · Hong Kong
SHISEIDO
Accountant - Financial Planning & Analysis, Finance And Accounts
Permanent · Hong Kong
SHISEIDO
Assistant Manager/Senior Officer - Demand Planning, Ipsa
Permanent · Hong Kong
PUMA
Coordinator Sample Accessories
Permanent · Hong Kong
SHISEIDO
Assistant Manager - Inventory Planning, Supply Chain Management
Permanent · Hong Kong
PUMA
Developer Apparel
Permanent · Hong Kong
GUSTO LUXE (FORMERLY REUTER COMMUNICATIONS)
PR Intern
Internship · 香港
PUMA
Intern Projects & Analytics
Internship · Hong Kong
PUMA
Assistant Manager Business Process Solutions
Permanent · Hong Kong
PUMA
Assistant Accountant
Permanent · Hong Kong
AESOP
Regional fp&a Analyst, Asia
Permanent · Hong Kong
AESOP
Office Coordinator
Permanent · Hong Kong
By
Reuters
Published
Dec 15, 2016
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

H&M monthly sales growth lags expectations

By
Reuters
Published
Dec 15, 2016

H&M, the world's second-biggest fashion retailer, reported sales growth in November roughly in line with the previous month, missing analysts' expectations for an acceleration on the back of demand for winter clothes.

H&M had been expected to report better November trading


The news cast further doubt on the extent of a recovery flagged by the Swedish fast fashion firm after years of tightening margins and several quarters of declining profit.

H&M and some rivals have been underperforming market leader Inditex, partly because the owner of the Zara stores has a supply chain that enables it to react more quickly to shifts in demand, making it less exposed to variations on weather.

H&M's local-currency turnover in November was up 9 percent from a year earlier, against a mean forecast in a Reuters poll of analysts for a 15 percent rise.

Inditex, meanwhile, said on Wednesday its sales growth was 16 percent in November and the first half of December.

H&M's shares traded 3.8 percent lower at 08:15 GMT, taking a year-to-date fall to around 14 percent against a year-to-date 1 percent rise for Inditex.

H&M has in the past year blamed sales misses on unseasonable weather, such as in September when growth stalled at a mere 1 percent after a warm start to autumn in Europe. In October, growth picked up to 10 percent.

Some analysts are however increasingly concerned that H&M is facing more fundamental structural issues such as tougher competition and the need to speed up its supply chain.

"In November, clothing markets across western and northern Europe should have been supportive, benefiting from colder weather year on year," SocGen analyst Anne Critchlow said.

"It remains to be seen whether H&M can accelerate sales in the first month of its new fiscal year, December, or whether slow sales trends will lead to increased mark-downs once again in the first quarter, to end February," she added. SocGen has a "Sell" rating on the stock.

H&M said sales in September through November, its fiscal fourth quarter, totalled 52.7 billion crowns ($5.7 billion), up from a year-ago 48.7 billion but below a forecast 53.5 billion.

H&M, which is due to publish its full quarterly earnings report on Jan. 31, did not comment on the sales figures.

 

© Thomson Reuters 2022 All rights reserved.