Sales flat against last year
Swedish fashion chain H&M has reported lower than expected like-for-like sales, with sales in September flat compared with the same month last year.
Analysts had expected the 1,300-store retailer to report like-for like sales up 3 per cent and, when new store openings are included, overall sales to be up 13 per cent. The actual overall increase was 9 per cent.
H&M's statement today did not give any explanation for the weak sales, but analysts blamed unusually hot weather in some of the company's key European markets - particularly Germany.
Analyst Goldman Sachs said it expected H&M's share price to come down to 265p, although it added that 'higher like-for-like growth than forecast' or a weaker US dollar could make the business more profitable and change the share price situation.
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