The past third quarter delivered a flat line for H&M. Sales rose 6%, but in local currency terms no growth remained. However, margins were said to be “moving in the right direction”.
No real growth
The third quarter clocked up 60.8 billion Swedish kronor (5.1 billion euros) at H&M Group. While that represents 6% sales growth, excluding currency effects it amounts to stagnation. Excluding Russia, Belarus and Ukraine, however, sales on a comparable basis did increase by 8%.
The fashion group is thus again performing significantly weaker than rival Inditex, but does say its operating margin is “heading in the right direction”. Next year, H&M aims for a 10% gross margin. Profitability and inventory management were therefore a priority this quarter. However, the group does not give figures until 27 September.