H&M reports increase in sales

Jun 18 2008

Fashion retail group H&M, with a store in Liverpool, enjoyed a 14% rise in like-for-like sales last month as warmer weather tempted in more shoppers for its summer ranges.

Total sales rose by a quarter during the month, the European firm said, in some rare good news from the high street.

H&M, which is the world’s third largest fashion retailer with 1,593 stores in 29 countries, has 137 outlets in the UK, making it the group’s second biggest market after Germany. The flagship UK store is on Regent Street in London, with other major sites in Leeds, Glasgow and Manchester.

Last month’s sales boost helped the firm’s total revenues rise by 8% to 21.6 billion Swedish krona (£1.8bn) during the second quarter to May 31. Profits after financial items were up 6% during the period to 5.4 billion krona (£456m).

But sales growth appeared to have slowed during the first half, despite today’s boost. Revenues rose 12% during the six months to 41.3 billion Swedish krona (£3.5bn), with profits 9% ahead at 9.5 billion Swedish krona (£800m).

Sales growth for both periods in the UK was 8% year-on-year. No UK breakdown for May was available.

Other retailers have been struggling amid a consumer spending slowdown in recent months.

H&M said a weak US dollar and good weather in May helped improve performance. The company also benefits from a weak US currency because it buys most of its clothes in US dollars.

Spokesman Nils Vinge said: “The Spring came late this year. That was the prime reason for the stronger figures in May.”

The first H&M store in the UK opened in 1976, and was the group’s first outside Scandinavia.