H&M’s sales drop after cold weather affected key markets
H&M Group has booked lower sales in the fiscal third quarter amid cold weather in many key European markets.
The fashion retailer’s sales fell 3 per cent to SEK59.01 billion (US$5.82 billion) and net profit dropped 30 per cent to SEK2.31 billion in the three months ended August 31.
“Despite a challenging start, we are concluding the third quarter with sales on par with last year in local currencies and with good cost control,” said Daniel Erver, CEO of H&M.
“We are strengthening the H&M brand by investing in products, the shopping experience and marketing, which we are already seeing start to make an impact and which will contribute to increased sales and profitability.”
Meanwhile, the company noted that its autumn collection has been well received.
The company opened the first flagship store for H&M Beauty in Sweden in September and will open the first H&M store in Brazil in Sao Paulo by the end of next year.
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