H&M November Sales Slow Sharply With Warm Weather--Update

By Dominic Chopping 

STOCKHOLM-- Hennes & Mauritz AB said Tuesday that sales rose 4% in November from the same month last year, coming in below analysts expectations, with unseasonably mild weather in North America and parts of Europe weighing on sales of winter clothing.

The Swedish fashion retailer still notched up growth of 11% for its fiscal year to end Nov. 30 from the previous 12 months.

H&M is more reliant on markets in northern Europe than some of its fashion-retailing rivals such as Industria de Diseño Textil SA, the group behind the Zara fast-fashion chain.

Sales in the quarter to end-November, excluding value-added tax, rose 14% to 48.69 billion Swedish kronor ($5.75 billion), up from SEK42.64 billion in the same period last year.

Fourth fiscal-quarter sales rose 9% in local currencies.

H&M continued to expand its network of stores, with 3,924 in operation Nov. 30, 12% more than the 3,511 on the same date last year. The retailer has been rolling out new stores in the U.S. and China as well as in India, a new market for the group.

Analysts had expected a 9% rise in November sales, according to a consensus estimate by data provider SIX.

The company is set to announce fiscal-year earnings on Jan. 28 next year.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

December 15, 2015 03:32 ET (08:32 GMT)

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