H&M Comparable Sales Flat in May, 2Q Sales Hit By Strong Krona

STOCKHOLM---Swedish fashion retailer Hennes & Mauritz AB (HM-B.SK) Wednesday said sales in the second quarter were hit by "substantial negative currency effects" due to the strong Swedish krona as it reports second-quarter sales that are in line with last year, but slightly below estimates.

 
   MAIN FACTS: 

-Sales in the quarter, ending May 31 were hit by "substantial negative currency effects as a result of the continued strengthening of the Swedish krona," the company said.

-"To illustrate the impact of the currency translation effects on sales: the reported sales figure of SEK36,923 million would have been approximately SEK1.8 billion [$273.6 million] higher using the same currency rates as in Q2 2012," the company said.

-In May, comparable sales were flat.

-Analysts polled by Dow Jones Newswires had forecast a like-for-like (comparable) sales increase of 1.4% in May.

-Total sales, including value-added tax in local currencies, rose 9% in May compared with the same month a year earlier.

-Analysts polled by Dow Jones Newswires had forecast total sales in May to rise 10.4%.

-For its second fiscal quarter, H&M said sales excluding VAT fell slightly to SEK31.64 billion from SEK31.66 billion last year.

-Analysts polled by Dow Jones Newswires had forecast second-quarter sales, excluding VAT, at SEK31.97 billion.

-Including VAT, sales in the second quarter fell marginally to SEK36.92 billion from SEK36.94 billion last year.

-H&M had 2,908 stores on May 31, compared with 2,575 stores at the same time last year.

-H&M reports full fiscal first-quarter earnings on June 19.

-Shares ended Tuesday at SEK224.20.

Write to Jens Hansegard at [e-mail]

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