H&M returns to pre-Covid level despite ‘flat’ sales

Last quarter, Swedish fashion giant H&M saw its sales rise 6 % to 57.6 billion Swedish crowns (just under five billion euros). That growth was mainly due to currency effects, as sales remained flat in local currencies. However, it looks like June has started well.

Painful comparison

H&M cites poorer weather than last year (especially in Europe) for the disappointing sales, but say that sales are now (finally) back to pre-Covid levels. To be clear: for H&M, the “second quarter” runs from March to May, i.e. not including the (well-started) June. For the full, detailed quarterly results, we still have to wait until 29 June.

Extra painful for the group above H&M, Arket and Monki is that its big rival, Inditex, did manage a significant increase in sales. Last quarter, the group that owns Zara was able to add 15 % to its sales.

Still, there is also good news, Reuters reports: H&M could build on the good start in June and end up with a 5 % sales increase (in local currency) for the June-August period, helped partly by strong growth in tourist numbers in Europe.