STOCKHOLM (Reuters) – H&M reported weaker-than-expected second-quarter sales on Thursday as unusually bad weather over the period dampened demand, but the Swedish group said June had started well and its stock was down. up in early trade.
The ready-to-wear group announced stable sales measured in local currencies for its March-May quarter, while analysts polled by Reuters on average expected a rise of 1%.
“Second quarter sales were impacted by unfavorable weather conditions compared to the corresponding period last year in several of the H&M Group’s major markets,” the group said in a statement.
According to a note from Jefferies, the results are less negative than expected, but still reflect a clear lag compared to competitors at the world’s second-largest fashion retailer.
Royal Bank of Canada analyst Richard Chamberlain said the third quarter will benefit from warmer weather and a positive calendar impact.
H&M has indeed announced that sales for the month of June had started well.
On the Stockholm Stock Exchange, the action took 4.29% at 09:11 GMT.
The group’s net sales increased by 6% to reach 57.6 billion Swedish crowns (4.95 billion euros), below forecasts of a 7% increase.
Inditex, which has held up better than H&M in the sluggish markets, reported last week a 13% increase in net sales in the first quarter.
(Report Marie Mannes and Anna Ringstrom, Augustin Turpin, edited by Blandine Hénault and Kate Entringer)
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