H&M sales grew 15% in local currencies during January

H&M sales grew 15% in local currencies during January

Swedish fashion retailer Hennes & Mauritz (H&M) has recorded a strong double-digit year-on-year increase in January sales - outperforming in a challenging market.

The retailer, which operates 3,184 stores under the H&M, Cos, Monki, Weekday, Cheap Monday, & Other Stories banners, said sales grew 15% in local currencies.

In a note, Bank of America Merrill Lynch analyst Richard Chamberlain estimated like-for-like sales were up 5% - outperforming industry sales - adding that the company has raised its earnings per share forecast by 1%.

"We expect H&M's outperformance to continue to be driven by a better quality offer, with range extensions in areas like sportswear, with 18 markets having an extended collection and homewares in an additional 15 markets," he explained.

Chamberlain said trading should have "remained strong" so far in February given milder temperatures in major markets, with the prospect of "easy" comparable store sales in March.