H&M says a month is far too short a period over which to assess how sales are developing

H&M says a month is far too short a period over which to assess how sales are developing

Swedish fashion giant Hennes & Mauritz (H&M) has posted another sales increase in June but revealed it will stop publishing monthly sales figures in favour of quarterly capital market days where it will provide more "in-depth" information about the business.

In a trading update today (17 July), the world's second largest fashion retailer said group sales grew 7% year-on-year, in local currencies. Converted into SEK, sales increased by 10%. This compares to May sales growth of 4%.

The retailer grew its store count in June to 4,517 from 4,095 in the year ago period.

Looking ahead, H&M says it will now publish the group's sales development per quarter instead of each month. As previously, sales for the quarter will be published ahead of each interim report as the percentage change in local currencies and in Swedish kronor as well as in absolute figures in Swedish kronor, both including and excluding VAT. 

"The reasoning is that a month is far too short a period over which to assess how sales are developing; in fact, a single month's sales can actually be misleading, since calendar and weather effects – among other things – may significantly affect the outcome," the retailer explained. "Instead sales development should be viewed over a longer period of time, such as over a season or a quarter. This is also the reason why the majority of companies in fashion retail currently report their sales quarterly rather than monthly.  

The company is expected to publish its third-quarter sales on 15 September and sales figures for the fourth quarter on 15 December.

It adds more information on capital markets days will be provided at a later date. 

Last month, H&M said it will continue to invest and develop its business with a digital focus as its expansion helped to boost sales and earnings in the second quarter.

Expansion helps boost H&M Q2