H&M’s share price has taken a hit despite sales jumping 10% and coming in slightly ahead of predictions.

H-and-M-store

H&M’s sales are up 10% year on year

The Swedish fashion giant recorded sales of SEK62.5bn (£4.9bn) in the fourth quarter, up 10% year on year and slightly ahead of market expectations of a 9.5% rise. 

Despite this, shares slumped 4.5% in early trading as H&M failed to quite keep pace with rival Inditex, which yesterday reported a 19% increase in net profit in the first three quarters of its financial year, despite sales softening 11% in the final quarter of that period. 

Last month, H&M became the first major European retailer to lay off staff in response to the cost-of-living crisis as it eyes SEK2bn (£160m) in savings a year. 

“The H&M group’s operations in Russia and Belarus were wound up during the quarter, with the remaining stock being sold off and the last stores having closed on November 30,” H&M said.

“During the quarter, around 25-50 stores in China were temporarily closed due to new Covid outbreaks.”

Topics