You are here

H&M's Q4 sales growth takes hit from later Black Friday

file77czy33ccxik6k4593h.jpg
H&M reported a slightly smaller-than-expected rise in fourth-quarter sales reflecting a later Black Friday this year, the world's second-biggest fashion retailer said on Monday.

[STOCKHOLM] H&M reported a slightly smaller-than-expected rise in fourth-quarter sales reflecting a later Black Friday this year, the world's second-biggest fashion retailer said on Monday.

Net sales rose 9 per cent to 61.7 billion Swedish krona (S$8.9 billion) for the September-November quarter, short of the 10 per cent rise to 62.0 billion krona expected by analysts, according to Refinitiv SmartEstimates.

In local currencies, sales growth was 5 per cent, a slowdown from the previous quarter.

"Sales development for the quarter compared with the previous year was affected by calendar effects, mainly because 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.

sentifi.com

Market voices on:

"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 per cent, or 6 per cent in local currencies.

In the preceding three months, H&M grew quarterly profit for the first time in more than two years as heavy spending to meet changes in the market helped sales reach 8 per cent growth in local currencies - a pace last seen three years ago.

H&M's shares have climbed 51 per cent 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.

Analysts expect full-year profits to grow for the first time since 2015, despite still-high inventory and investment levels.

Full-year net sales were up 11 per cent to 232.8 billion krona. H&M is scheduled to publish its full earnings report on Jan 30.

REUTERS