Winter blues for H&M

Winter blues for H&M

The warm weather, for the time of the year, has had a detrimental effect on Swedish clothing group Hennes & Mauritz' quarterly turnover. Zara and Primark's strong competitive position will also have had its impact.

Weak November

As everyone awaits the actual winter weather, sales for winter clothing have also lagged behind. H&M's fourth quarter turnover for its broken fiscal year reached 48.7 billion Swedish krona (excluding VAT), some 5.2 billion euro. That result is well below analyst expectations, which stood at 49.5 billion krona. 

 

November was the worst month of the previous quarter: turnover (in Swedish krona) barely reached 4 % higher than last year, only the second time this year monthly growth dipped below 10 %. The nice weather was mostly an issue in Germany, where it generates a fifth of its turnover, and in the United States.

 

Spanish Inditex, boasting the largest quarterly turnover growth in three years' time, and Irish low-cost retailer Primark have also definitely caused havoc for H&M's turnover.

 

Hennes & Mauritz now has 3,924 stores worldwide, up 413 compared to last year. These stores generated 209.92 billion Swedish krona in turnover over its entire fiscal year, which is 22.62 billion euro. That is a 19 % increase overall and an 11 % increase in local currency. The company will present its final numbers on 28 January.

Questions or comments? Please feel free to contact the editors


Small Belgian brewery conquers Brazil thanks to playing cards

13/09/2017

Het Nest, a small brewery from Turnhout, will get its beers brewed in Brazil as well. It has struck a deal with Cervejaria Premium Paulista, which will brew and distribute the beers locally.

Price cuts drive 25 % more customers to Whole Foods

12/09/2017

Supermarket chain Whole Foods welcomed an additional 25 % of customers in the first few days following Amazon’s price cuts.

Ter Beke enters British food service industry

12/09/2017

Belgian food group Ter Beke has acquired a 90 % stake in British competitor KK Fine Foods for an undisclosed fee. The current shareholders hold onto the other 10 %.

Godiva wants to conquer the world through supermarkets

12/09/2017

Belgian praline brand Godiva will soon sell its chocolate in supermarkets all over the world after signing a deal with chains like Albert Heijn and Sainsbury’s. Previously, it sold nearly all its chocolate through its own store network.

Insight: Xavier Piesvaux' seven labours at Delhaize

10/09/2017

Can one French and several Dutch managers do what the Belgian management failed to do these past few years at Delhaize Belgium? Its new CEO will face plenty of challenges: we count at least seven.

Nestlé USA acquires food manufacturer Sweet Earth

08/09/2017

Nestlé USA has acquired American Sweet Earth for an undisclosed fee. The company mainly manufactures meat replacements, a rapidly-growing market, but also several frozen meals.

Back to top