H&M recorded sales growth in June

H&M recorded sales growth in June

Swedish fashion giant Hennes & Mauritz (H&M) has posted another monthly sales increase in June. 

H&M group sales including VAT increased by 8% in local currencies for the month of June, compared to the same month the previous year. The total number of stores rose from 3,642 to 4,095 over the year. 

The results mean H&M's sales have now risen for 39 consecutive months. The 8% year-on-year June sales rise is slightly down on the 8% booked in May.

Stifel analyst Richard Jaffe believes a challenging macroeconomic retail environment, a shift in consumer spending and a difficult comp comparison held back sales in the month. "We believe sales were weakest at the company's H&M division and strongest at COS and & Other Stories, similar to the trend we saw in 2Q," he adds.

In its second-quarter results published last month, H&M blamed higher purchasing costs due to the strengthened US dollar and increased markdowns for a 17% fall in profit. 

The fashion retailer is planning to launch online in Canada and South Korea later this year and continue its fast roll-out in 2016, while opening stores in five new markets, of which Colombia will be one.

H&M Q2 sales slump on increased markdowns