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.
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.
The shares fell more than two percent as a result nationwide.
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.
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.
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.
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.
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.
Full year results for the retailer will be in the three-month report from H&M group, due to be released on March 30.