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HomeNEWSH&M Christmas trading failed to meet expectations

H&M Christmas trading failed to meet expectations

Retail store H&M has released its Christmas trading results posting a rise in sales, although coming well below analyst expectations.

Retail store H&M has released its Christmas trading results for its Auckland store, posting a rise in sales, although coming well below analyst expectations.

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Sales rose six percent in December, the slowest growth since September and behind the nine percent analysts had forecast. The expected result from the store was not reached.

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The shares fell more than two percent as a result nationwide.

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Although H&M revenue has been rising steadily, this marks the slowest rate of growth since the store’s official opening last year in Sylvia park on October 1.

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The lack of Christmas spending was disappointing for the H&M Group, which employed Wes Anderson as a director for its four minute Christmas ad to try and boost shopping.

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Internationally, sales rose by 10 percent during May 2016, the final month in H&M’s second quarter, on a local currency basis. But the group are still disappointed by the below expected rate.

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Unseasonable Auckland weather has typically been blamed for the slow results with many analysts drawing comparisons with Zara’s owner Inditex, the only clothing retailer in Sylvia Park larger than H&M.

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Store openings are reportedly the driving force behind the growth in H&M’s sales, with the retailer now boasting a total estate of 4,379 stores, up from 3,957 the year before. 

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Full year results for the retailer will be in the three-month report from H&M group, due to be released on March 30. 

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