STOCKHOLM: Fashion retailer H&M said on Monday its sales rose nine percent in the fourth quarter, putting it on course to increase annual profits for the first time in four years following heavy investment in online and other services to adapt to a changing market.
They have now climbed 53 percent this year on hopes the group has embarked on a road to recovery after slowing footfall at its core H&M-branded stores caused years of sliding group profits, mounting inventories and shrinking market value.
Over the past few years the Swedish-based retailer has invested in online services, new store concepts and independent brands to broaden its customer base and turn itself around.
H&M said its sales in September-November, its fourth quarter, were held back by the Black Friday shopping day falling later this year.
It said sales for the quarter rose nine percent to 61.7 billion crowns ($6.41 billion). Analysts had forecast a 10 percent rise, according to Refinitiv SmartEstimates.
In local currencies, growth was five percent.
“Black Friday this year fell a week later, i.e. just before the end of the month of November,” H&M said in a statement.
“Therefore some of the big Black Friday online sales will not be recognised until December. The amount in question is expected to be approximately 500 million crowns.”
H&M said that adjusted for that, sales grew 10 percent, or six percent in local currencies and analysts said that stripping out the Black Friday impact, sales broadly matched expectations.
Rival Inditex, the world’s biggest clothing retailer and owner of the Zara chain, said last week its net profit grew 14 percent in the three months through October, helped by sales growth of nine percent according to Reuters’ calculation and shrinking inventories. – Reuters
