H&M blames sales slump on September sun

H&M blames sales slump on September sun

Hight Street fashion chain H&M warned of tumbling sales as sunny September dents demand for autumn clothes.

The Swedish group said it expects sales this month to be down 10pc on the same period last year as it deals with ‘unusually hot weather in several of the company’s European markets’.

But the update drew comparisons with arch-rival Inditex, which owns Zara and reported a 14pc rise in sales between 1 August and 11 September.

‘If the sales at your competitor basically go up by 14pc with the same weather, that tells you something, to my mind,’ said Vera Diehl, a fund manager at Union Investment which holds shares in H&M and Inditex.

The H&M update came a day after Asos said the washout in July and August left it struggling to sell summer clothes. Despite the bleak update for September, H&M shares rose 4pc, or 6.3p, to 161p in Stockholm as it revealed profits between June and August jumped from £66m to £345m.

It stuck to its goal of increasing operating margins to 10pc next year and said it was pressing ahead with its cost-cutting programme.

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