Austerity helps budget focused H&M grow

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Austerity helps budget focused H&M grow

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Hennes & Mauritz said its sales rose in June – up three percent from the same month last year on a direct comparison of stores.

The Swedish budget fashion firm enjoyed robust demand for its cheaper clothing from austerity-hit shoppers.

H&M, the world’s second-largest clothing retailer, does most of its business in Europe, but is
broadening its geographic spread with almost 2,600 stores in 44 markets.

In Germany, H&M’s single biggest market by far, the overall clothing market was down two percent, according to industry data.

In May and in the fiscal first half of the year, H&M’s like-for-like sales were up three percent, and total sales rose 12 percent.

The leader in the sector, Zara owner Inditex, also defied the economic gloom in its second quarter, proving it can sell to both fashion-hungry shoppers in emerging Asia and cash-strapped consumers in Europe.