SWEDEN: H&M first-quarter sales continue to rise
Sales including VAT grew 13% to SEK37.52bn in the quarter
Swedish fashion retailer Hennes & Mauritz has booked a double-digit fourth-quarter sales increase despite a tough retail environment.
Sales including VAT grew 13% to SEK37.52bn (US$5.88bn) in the three months to 28 February, from SEK33.15bn in the same period of last year.
In local currencies, sales rose by 12% year-on-year. Excluding VAT, sales reached SEK32.1bn, up from the prior year's SEK28.39bn.
The company, which operates 3,192 stores under the H&M, Cos, Monki, Weekday, Cheap Monday, & Other Stories banners, said February sales, including VAT, increased 11% in local currencies.
Bank of America Merrill Lynch analyst Richard Chamberlain said although the group's first-quarter sales excluding VAT were 1% below its estimates, the positive like-for-like trend continues, suggesting comparable store sales climbed 1-2%.
He noted there has been "some concern" over the impact of rising cotton prices on clothing retailers as these have hit a one year high, but they are still well below the spike of 2010-11.
"If cotton prices continue to rise this could be more of a negative for lower priced retailers such as H&M as raw material tends to be a higher proportion of the cost of a garment.
"They are only one element of cost though (20-40% of cost of goods sold) and tend to be diluted down the manufacturing chain before they affect retailers like H&M."
The retailer should expect a "better sales trend" from 2014, Chamberlain added, partly driven by e-commerce catch up, a stable to improving gross margin, operating expense leverage from like-for-like sales growth, and share gains in global fragmented apparel markets.
While Stifel analyst Richard Jaffe raised H&M's earnings per share estimate for the first quarter, after sales were above its expectations.
This report analyzes the worldwide markets for Sports and Fitness Clothing in US$ Million by the following Segments: Sports Apparel, and Fitness Clothing....
This report analyzes the worldwide markets for Footwear in US$ Million and Million Pairs by the following Product Categories/Segments: Athletic...
Vital industry-specific data including metrics, benchmarks, historic numbers, growth rates and forecasts that will save countless hours of research....
The line-up for this year's Prime Source Forum in Hong Kong features senior executives from VF Corp, PVH, Under Armour, New Balance, Adidas and TAL Apparel, who will discuss sourcing in Africa, the im...
The “Clothing & Footwear Retailing in the Middle East & Africa, 2013-2018” report, published by Conlumino, provides an analysis of current and forecast market data of retail sales in the clothing and ...
- How apparel retailers should react to Brexit
- US fashion firms share their sourcing strategies
- Britain votes for Brexit – what happens next?
- Retailers warned of high volatility in Brexit wake
- Lies and statistics – the sustainability version
- Columbia rain jacket a milestone in sustainability
- Myanmar factories prepare for compliance training
- ILO decent work in global supply chains criticised
- Alliance cuts ties with three more factories
- Online fabric platform to "revolutionise" buying
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Primark Stores Limited: Retailing - Company Profile & SWOT Analysis
- Clothing & Footwear Retailing in Indonesia– Market Summary & Forecasts
- Clothing & Footwear Retailing in China – Market Summary & Forecasts
- Nike Inc in Apparel and Footwear (World)