COPENHAGEN (Reuters) – H&M, the world’s second-biggest apparel chain, reported on Thursday a 10% increase in year-on-year net sales between September and November, outpacing slightly lower than market expectations, which were counting on a 9.5% increase.
Net sales for the period, which corresponds to H&M’s fourth fiscal quarter, came to 62.5 billion Swedish crowns (5.75 billion euros), against 56.8 billion crowns a year earlier, while that analysts polled by Refinitiv expected an average of 62.17 billion crowns.
“H&M Group’s operations in Russia and Belarus were liquidated during the quarter, with remaining inventory sold and the last stores closed on November 30,” the company said in a statement.
“During the quarter, approximately 25-50 stores in China were temporarily closed due to new Covid outbreaks.”
Measured in local currencies, revenue for the quarter remained unchanged, the group said.
H&M, which is struggling to compete with Zara, its main competitor, last month became the first major European retailer to lay off staff in response to the cost of living crisis, as the group tries to save 2 billion Swedish crowns per year.
(1 euro = 10.8650 Swedish crowns)
(Stine Jacobsen report, French version Augustin Turpin)
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