H&M Group was only able to release a minimal sales growth today, while profit growth was also below expectations. The fashion retailer blames its disappointing sales on the bad weather and the uncertain economic context.
Lower turnover in June
In the second quarter of the current financial year, ending 31 May, H&M Group saw its sales rise 3 % to 59.6 billion Swedish crowns (5.2 billion euros). With 7.1 billion crowns (620 million euros), operating profit remained slightly below analysts’ expectations.
At the beginning of June, sales were down 6 % as the ailing weather caused consumers to abandon summer collections. However, the situation improved again thanks to weather improvement towards the end of the month, the group that also operates brands Arket, Cos, Monki, Weekday, & Other Stories reported.
CEO Daniel Ervér is confident that “With a sharp increase in profit for four consecutive quarters, we are well on the way to achieving our long-term goal of profitability exceeding 10 percent over time.” However, he does admit that the conditions for achieving those targets are challenging, given the impact of external factors on purchasing costs and sales.
