H&M and Inditex register soaring sales as fashion rebounds

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Fashion giants H&M and Inditex have both hailed their sales recovery following lockdowns in the lead up to the festive season.

zara

H&M reported sales up 11% in local currencies in the fourth quarter to November 30, culminating in a 12% increase in revenues for the full year to the same date.

Net sales for the group increased 8% in the quarter to SEK 56,813m (£4.7bn) and 6% to SEK 198,967m (£16.4bn) for the full year.

The Swedish fashion retailer, which also owns brands such as Monki and Cos, said sales in the fourth quarter had now reached the same as in 2019 in local currencies.

At the end of the quarter, 115 of its stores remained closed, mostly in Southeast Asia, Austria and Slovakia.

H&M said in its statement: “The H&M group’s strong recovery continues. Customers are showing that they appreciate the collections and being able to shop where, when and how they choose.”

Inditex meanwhile has beaten its own records in the third quarter.

The fashion group, which includes Zara, Pull & Bear and Bershka, recorded its EBITDA up 63% to €5.4bn (£4.6bn) in the first nine months of the financial year to October 31.

‘Isla’s Inditex legacy is that the business is bigger than him’

Net profit also grew 273% to €2.5bn (£2.1bn) in the same nine-month period.

For the third quarter alone, both these measures exceeded Inditex’s records.

In the nine months, revenues for the group soared 37% year on year to €19.3bn (£16.4bn), largely driven by online – which grew 28% in local currencies compared with the previous year and 124% compared with 2019.

Inditex executive chair Pablo Isla said: “These results are very satisfactory and demonstrate once again the solidity of our business model, the quality and commitment of our teams, and the potential being realised by our strategy of fully integrating stores and online.”