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H&M loses sales mojo

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By Euronews
H&M loses sales mojo

<p>Investors are disappointed with clothing giant H&M’s October sales, which were unexpectedly low. </p> <p>Sales took a 5% hit compared to October last year. Total sales though, rose 4%, but that is less than forecast, a small return for the 300 new stores opened last year. </p> <p>The company said the results were because of an unusually warm autumn and the crisis, which forces people to save money. More than half of H&M’s revenues come from Central Europe. Experts however point to another reason – diversification. </p> <p>For H&M’s main rival, Spain’s Inditex, brands other than Zara account for 62% of all its outlets. At H&M, by contrast, the non-flagship brands represent only some 5% of total stores. </p> <p>Zara famously needs just a few weeks to develop a new product and get it to stores. H&M collections come traditionally twice a year. At the same time, the Swedish group focuses on its ‘top-guests collaborations’, that is, famous designers working on collections for H&M, to make high fashion affordable for everyone. </p> <p>H&M has started selling a Maison Martin Margiela collection. The retailer is counting on it to attract attention over the winter holidays. </p> <p>But investors are parting with their money less willingly than the customers, and were reluctant to buy on the stock market. H&M shares lost 2.96% at the close in Stockholm. </p> <p><span class="caps">XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX</span></p> <p><span class="caps">BROADCAST</span> <span class="caps">SCRIPT</span> </p> <p>Investors are disappointed with clothing giant H&M’s October sales, which were unexpectedly low. </p> <p>(<span class="caps">GRA</span> 1) <br /> Sales took a 5% hit compared to October last year. Total sales though, rose 4%, but that’s less than forecast, a small return for the 300 new stores opened last year. <br /> (<span class="caps">OUT</span>) <br /> The company said the results were because of an unusually warm autumn and the crisis, which forces people to save money. More than half of H&M’s revenues come from Central Europe. Experts however point to another reason – diversification. </p> <p>(<span class="caps">GRA</span> 2) <br /> For H&M’s main rival – Spanish Inditex – brands other than Zara account for 62% of all its outlets. At H&M, by contrast, the non-flagship brands represent only some 5% of total stores. <br /> (<span class="caps">OUT</span>) </p> <p>Zara famously needs just a few weeks to develop a new product and get it to stores. H&M collections come traditionally twice a year. At the same time, the Swedish group focuses on its ‘top-guests collaborations’, that is, famous designers working on collections for H&M, to make fashion affordable for everyone. </p> <p>H&M has started selling a Maison Martin Margiela collection. The retailer is counting on it to attract attention over the winter holidays. </p> <p>(<span class="caps">GRA</span> 3) <br /> But investors are parting with their money less willingly than the customers, and were reluctant to buy on the stock market. H&M shares lost ,,, at the close in Stockholm.</p>