H&Ms sales increased 17% in July

H&M's sales increased 17% in July

Swedish fashion giant Hennes & Mauritz H&M booked "solid" sales gain in July, driven by a favourable customer response to its merchandise.

The company, which operates more than 3,314 stores, said total sales, including VAT, jumped 17% in local currencies compared to the same month last year.

This was above the 12% rise it recorded in June, and marked H&M's eleventh consecutive month of sales growth. The increase also beat a mean forecast in a Reuters poll of analysts for 11% growth.

Stifel analyst Richard Jaffe, said the "solid" sales were achieved as "customers responded positively to the company's trend-right, value priced merchandise". 

Trend wise, Jaffe believes H&M was one of the "big winners" this summer, with its merchandise offerings hitting on most of the key trends. "We expect strength has continued into August, likely resulting in strong third-quarter results," he added.