Swedish apparel retailer Hennes & Mauritz AB or H&M (HMRZF.PK, HNNMY.PK) Monday reported lower sales for the month of March amid unusually cold weather, against tough prior- year comparatives.
In March 2012, weather conditions were favorable for the season. However, March 2013 experienced unusually cold weather and snow in many markets, especially in Europe and North America. This delayed the start of the season for the spring collections, and negatively affected sales. The unusually cold weather has continued in April, primarily in Europe, H&M noted.
H&M Group total sales in March 2013 decreased by 4 percent including VAT in local currencies. Sales in comparable units decreased by 12 percent. Comparable units include the stores and the internet and catalogue sales countries that have been in operation for at least a financial year.
H&M noted that the sales development should be seen in the light of very strong comparable sales development in March 2012. Sales in March 2012 had increased by 26 percent in total and climbed by 16 percent in comparable units.
In February, sales including VAT increased 5 percent in local currencies, while sales in comparable units decreased 3 percentage points.
Last month, the company had reported a 10 percent decline in first-quarter profit, hurt by large long-term investments as well as substantial negative currency translation effects. At that time, the company also underlined that sales in March should be seen in the light of a very strong sales increase of 26 percent a year ago.
H&M also said then that the fashion retail industry is being affected mostly by the continued tough macro-economic climate and unfavourable weather during parts of the quarter primarily in Europe and North America.
The total number of stores amounted to 2,853 on March 31, 2013 compared to 2,517 on March 31, 2012.
The stock fell 1.38 percent on Friday to settle at 228.90 Swedish kronor.
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