Though fashion H&M sales in three months ending August 31 posted an increase in net sales of 6 percent it paled when compared with its main rival Inditex which beat all expectations to register record sales.
The Swedish retailer conceded its net sales, in local currencies, were “flattish” year-on-year. The results were also against the expectations of market analysts. The fashion brand struggled to keep up with its rival Inditex, which hailed strong sales.
The retailer posted net sales of £4.38bn for the three months to 31 August 2023, lagging behind the £4.57bn forecast by analysts. The H&M group also owns Arket, Cos, Monki, & Other Stories, and Weekday has struggled to match the sales growth at its Spanish rival Inditex.
The Spanish giant’s sales across all of its brands, including Zara, Pull & Bear, Massimo Dutti, Bershka, and Stradivarius, grew 13.5 percent, hitting £14.5bn.
Experts say that Inditex, particularly Zara, took the bold decision of increasing its prices earlier than its rivals while heavily investing in marketing that boosted its sales. On the other hand, H&M found it challenging to pass on rising costs to its consumers that impacted its growth.
The H&M group in a statement says that the company expects to achieve its target of increasing operating margins by 10 percent in 2024. H&M is due to publish a full nine-month trading report on 27 September 2023.
Earlier this month the retailer revealed it would be bringing its pre-loved shopping experience to the UK as it ramps up its sustainability efforts.
H&M posts half sales growth than rival Inditex
