Heatwave chills H&M’s sales

Swedish clothing chain H&M has suffered in the August heatwave.

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.

Heat in Germany, France and Spain put the freeze on the autumn ranges, already in the shops.

The consequence has been H&M’s quarterly turnover compared to Q3 last year is only seven percent up.

That has disappointed analyst’s forecasts.

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.

So investors in Stockholm got cold feet on Monday where H&M had lost 1.58 percent by the close.

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.

H&M is in fact looking to reduce its exposure to crisis-bound Europe, where it currently generates 60 percent of its turnover.

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