Swedish fashion retailer H&M (STO:HM-B) announced on Friday its local-currency sales for its first financial quarter. Sales match predictions set by analysts and net sales came in above expectations.
Over the three-month period from 1 December 2018 – 28 February 2019, the retailer’s local currency sales (including VAT) increased by 4% when compared to the same period the year prior. According to Reuters, this result aligns with predictions made by its analysts.
The world’s second largest fashion retailer said that net sales (excluding VAT) increased by 10% over the period to 51.0 billion crowns (£4.15 billion). Forecasts expected the increase to be 8%, so results are above expectations.
The statement said that H&M will publish its full three-month report later in the month.
The company has now seen its local-currency sales increase for three consecutive quarters.
The global fashion retailer operates in 62 countries with over 4,500 stories. As of 2015 it employed roughly 132,000 workers.
It is no secret that the UK high street has faced tough trading condition over the past few months. In fact, a new report from PwC identified that the UK high street is facing the toughest trading condition in five years.
In the first six months of 2018, 4,400 shops, pubs and restaurants closed, and fashion and electrical stores are some of the hardest hit as shoppers opt for online shopping.
As H&M enjoys strong sales performance, its competitor Zara issued a trading update at the end of last year revealing a knock to its profits following the summer heatwave. In a trading update issued by the Spanish group, Inditex (BME:ITX) revealed sales and profits figures that came in lower-than-expected, and its shares took a hit.
At 09:40 CET Friday, shares in H&M Hennes & Mauritz AB (STO:HM-B) were trading at -4.14%.
Shares in Inditex SA (BME:ITX) were up 0.6% as of 09:25 CET.