default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

H&M Sales Miss Estimates as Retailer Falls Behind Rival Zara

A close-up shot of the H&M logo on a storefront.
Revenue dropped 4 percent excluding currency shifts in the three months through August, the Swedish retailer said Thursday. (Shutterstock)

Hennes & Mauritz AB sales declined more than expected over the summer as the Swedish retailer fell further behind rival Zara amid a growing cost-of-living crisis across Europe.

Revenue dropped 4 percent excluding currency shifts in the three months through August, the Swedish retailer said Thursday. Analysts had expected a decline of 1.4 percent. That’s the first retreat in six quarters.

Zara-owner Inditex SA on Wednesday reported a 25 percent jump in sales for the first half and a higher profit than expected after increasing prices. H&M has said it seeks to strengthen its market position by not raising prices as much as competitors.

The company, one of the world’s biggest fashion retailers, had almost recovered from the Covid 19 pandemic when Russia invaded Ukraine, and is now struggling with soaring inflation and a more pessimistic outlook for the broader economy. In June, H&M said it would take a financial hit of 2 billion kronor ($190 million) for closing its shops and exiting Russia.

Sales gradually improved during the quarter because of higher interest in its autumn collections, H&M said. Total revenue was 57.45 billion kronor.

The shares swung between gains and losses in early trading in Stockholm Thursday. The stock has lost more than a third of its value this year and currently trades near its coronavirus-related lows of the spring 2020. That’s when the firm had as much as 80 percent of its store network closed.

By Anton Wilen

Learn more:

Inditex’s First Half Sales Surge Ahead of Potential Slowdown

In the first set of results since its founder’s daughter, Marta Ortega, took over as new non-executive chairman, the company said revenue for the period rose to €14.84 billion ($14.82 billion) from €11.9 billion a year earlier. It booked a net profit of €1.79 billion from €1.27 billion last year.

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.


The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.



The sportswear giant posted flat sales in its latest quarterly report, beating Wall Street expectations. To fully recover, the business must demonstrate greater product innovation, analysts say.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections