15 hours ago | By Sandra Halliday
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Discounting dampened H&M’s Q3 revenue growth, the Swedish fashion retail giant admitted Friday. The company said its total sales in the three months to August 31 rose 5%, including VAT, to SEK59.38bn, in line analysts’ expectations.
Revenues, excluding sales tax, also rose 5% to SEK51.23bn. In local currencies they rose only 4%. Its global store count hit 4,553 on August 31, compared to 4,135 a year ago.
Meanwhile, the retailer’s store count was 9% higher than a year ago, taking the shine off that 5% quarterly sales increase.
Sales in the quarter were affected by a “significantly larger summer sale this year than in the corresponding quarter last year – both in terms of the number of items and the average discount per piece – which had a dampening effect on revenue growth,” H&M confirmed.
However, the summer’s bigger markdowns led to an improved inventory position and good conditions for the incoming autumn offer that is dropping in-store now, and this has “helped sales of the autumn collections get off to a good start.”
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