Close
Log in
Please enter your login details

Skip to main content

Breaking News
  • Nigeria: Residents in the north east say an attack on two polling stations by suspected militants has left two people dead – AFP
  • Saudi King Salman says operation decisive storm will continue until achieves its targets, and Yemen achieves peace and security – Reuters
Facebook Twitter Google+ Reddit

H&M loses sales mojo

15/11/12 19:41 CET

H&M loses sales mojo
close share panel

Share this article

Twitter Facebook

Investors are disappointed with clothing giant H&M’s October sales, which were unexpectedly low.

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.

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.

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.

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.

H&M has started selling a Maison Martin Margiela collection. The retailer is counting on it to attract attention over the winter holidays.

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.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

BROADCAST SCRIPT

Investors are disappointed with clothing giant H&M’s October sales, which were unexpectedly low.

(GRA 1)
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.
(OUT)
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.

(GRA 2)
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.
(OUT)

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.

H&M has started selling a Maison Martin Margiela collection. The retailer is counting on it to attract attention over the winter holidays.

(GRA 3)
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.

More about:

Check out today's top stories