H&M said unusually hot weather in many of its European markets had delayed the start of the autumn shopping season, sending sales lower in September, while cost cuts helped the fashion retailer’s quarterly profit rise. H&M, whose biggest rival is Zara owner Inditex, said September sales would be down 10% year-on-year measured in local currencies. That compares with Inditex reporting sales between Aug. 1 and Sept. 11 that were up 14%.
The decline deals a blow to hopes the world’s second-biggest fashion retailer is turning its performance around after lagging behind Inditex, as a cost-of-living crisis curbs shoppers’ spending. “If the sales at your competitor basically go up by 14% with the same weather, that tells you something, to my mind,” said Vera Diehl, portfolio manager at Union Investment, which holds shares in both H&M and Inditex.
Source: Devdiscourse
