Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

H&M's sales in local currencies back at pre-pandemic level

Published 12/15/2021, 02:14 AM
Updated 12/15/2021, 03:16 AM
© Reuters. FILE PHOTO: A view shows an H&M warehouse at Magna Park in Milton Keynes, Britain, September 26, 2021. REUTERS/Andrew Boyers/File Photo

STOCKHOLM (Reuters) -H&M, the world's second-biggest fashion retailer, said on Wednesday its sales measured in local currencies in the September to November period matched levels achieved before the pandemic drove down demand.

Net sales were up 8% year on year at 56.8 billion crowns ($6.22 billion) in the period, H&M's fiscal fourth quarter, matching the mean forecast in a Refinitiv poll of analysts.

Measured in local currencies, sales were up 11%.

"Despite continued restrictions and the negative consequences of the pandemic, the H&M group's sales in local currencies were back at the same level as in the fourth quarter of 2019," the company said in a statement.

"Customers are showing that they appreciate the collections and being able to shop where, when and how they choose," it said.

Net sales in Swedish crowns still lagged pre-pandemic levels. Two years earlier, they stood at 61.7 billion crowns.

At the end of November, around 115 H&M stores were temporarily closed due to restrictions, mainly in Austria and Slovakia. At the start of the quarter, about 100 had been closed, mainly in southeast Asia.

H&M warned on Sept. 30 that sales growth in September was held back by global supply chain disruptions but did not mention the issue in Wednesday's statement.

In the May-July period, its sales jumped from a year earlier as the effects of the pandemic waned but they stayed below pre-pandemic levels. Profits returned to above pre-pandemic levels.'

H&M is due to publish its full fourth-quarter earnings report on Jan. 28.

© Reuters. FILE PHOTO: A view shows an H&M warehouse at Magna Park in Milton Keynes, Britain, September 26, 2021. REUTERS/Andrew Boyers/File Photo

H&M's biggest rival Inditex (MC:ITX), the owner of Zara, reported on Wednesday record quarterly sales in the three months through October, rising above pre-pandemic levels for a second straight quarter.

($1 = 9.1339 Swedish crowns)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.