Shares in H&M were down by almost 4% this morning (15 March) despite the Swedish fast fashion retailer reporting a double-digit rise in first-quarter sales.
In a statement on its sales development in the period, H&M said for the 13 weeks from 1 December 2018 to 28 February 2019, group net sales increased by 10% to SEK 51.02bn (US$5.5bn). The figure compares with SEK46.18bn last year. In local currencies, net sales increased by 4%.
H&M has battled with slowing sales and falling profits in the last few years as a result of declining footfall due to changes in customer behaviour, particularly in its namesake stores.
In January, however, the retailer offered an optimistic outlook on the year ahead, with CEO Karl-Johan Persson confident the group is on the “right track” despite a fall in profit for both the fourth quarter and full year.
The group operates over 4,900 stores in 71 markets under brands including H&M, COS, Monki, Weekday, & Other Stories and Arket.
H&M will publish its three-month report on 29 March, covering the period 1 December 2018 to 28 February 2019.
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