STOCKHOLM (Reuters) – Sweden’s H&M reported on Thursday unchanged second-quarter sales measured in local currencies, slightly lagging expectations, and said cold weather held back demand.
Analysts polled by Reuters had on average forecast a year-on-year rise of 1%.
Net sales at the world’s second-biggest fashion retailer after Zara owner Inditex were up 6% to 57.6 billion crowns ($5.36 billion) against a forecast 7% rise to 58.2 billion.
“Sales in the second quarter were affected by unfavourable weather conditions compared to the corresponding period last year on several of the H&M group’s large markets. June has got off to a good start,” H&M said in a statement.
H&M last year launched a savings drive following a spike in costs which it has only partly been passing on to cash strapped customers, and its sales growth has been lagging that of Inditex as well as online players such as fast-expanding Shein.
Inditex, which has coped better than H&M in sluggish markets, last week said net sales in its quarter through April were up 13% and, in May, up 16%.
(Reporting by Marie Mannes and Anna Ringstrom, editing by Terje Solsvik)
