Heatwave chills H&M's sales

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By Euronews
Heatwave chills H&M's sales

<p>Swedish clothing chain H&M has suffered in the August heatwave.</p> <p>Sales are down by four percent at the world’s second-biggest fashion retailer, and in the newest stores that have been open for less than a year, the ones analysts expected to show stronger figures.</p> <p>Heat in Germany, France and Spain put the freeze on the autumn ranges, already in the shops.</p> <p>The consequence has been H&M’s quarterly turnover compared to Q3 last year is only seven percent up.</p> <p>That has disappointed analyst’s forecasts.</p> <p>The group has also lost out when converting its profits into Swedish crowns, as over this period the kronor has strongly appreciated against the euro.</p> <p>So investors in Stockholm got cold feet on Monday where H&M had lost 1.58 percent by the close.</p> <p>But a little perspective is needed. This year the price of H&M shares has risen by 15 percent, and the markets like the group’s expansion policies in the Americas and Asia.</p> <p>H&M is in fact looking to reduce its exposure to crisis-bound Europe, where it currently generates 60 percent of its turnover.</p> <p><iframe width="560" height="315" src="http://www.youtube.com/embed/_3ttjvKItfM" frameborder="0" allowfullscreen></iframe></p>