H&M sales rise during third quarter, despite logistics hitches
In this article (5)
Global H&M sales rose 9 per cent during the third quarter to August 31 as the fast-fashion retailer made the most of a new supply chain system put in place in Europe and North America.
On a constant-currency basis, sales rose by a more modest 4 per cent.
According to a brief announcement, which did not include any geographical breakdown of the company’s quarterly performance, sales excluding VAT reached SEK 55.821 billion (US$6.26 billion).
“The H&M group’s continuous transition, to face the major shift within the industry, has contributed to a gradually improved sales development and increased market share in many markets in the third quarter,” the company said.
“However, sales and cost development in some of the group’s important markets such as the US, France, Italy and Belgium were in the third quarter considerably affected by the issues that emerged during the implementation of new logistics systems in the spring.”
The new logistics systems enable a faster and more efficient supply chain as well as a continued integration of store and online.
A more detailed set of figures is expected with the release of nine-month results on September 27.
Questions & Answers
Q.How much did H&M's sales increase in the third quarter after accounting for currency fluctuations?
How much did H&M's sales increase in the third quarter after accounting for currency fluctuations?
On a constant-currency basis, H&M's sales in the third quarter rose by 4 per cent. This figure adjusts for the impact of exchange rate movements, giving a clearer picture of underlying sales performance.
Q.What issues affected H&M's sales and cost development in some key markets?
What issues affected H&M's sales and cost development in some key markets?
Sales and cost development in markets like the US, France, Italy, and Belgium were significantly impacted by issues that arose during the spring. These problems were related to the implementation of new logistics systems.
Q.When will more detailed financial results for H&M be released?
When will more detailed financial results for H&M be released?
A more detailed set of figures, including comprehensive financial information for the company, is expected to be released on September 27. These will be the nine-month results for H&M.
Q.What is the purpose of the new logistics systems implemented by H&M?
What is the purpose of the new logistics systems implemented by H&M?
The new logistics systems are designed to create a faster and more efficient supply chain for H&M. They also aim to further integrate the company's in-store and online operations for a smooth customer experience.