H&M has reported a slower than expected rebound in sales in its third quarter as store closures from coronavirus restrictions around the globe continued to have an effect.
For the third quarter covering June 1 to August 31, 2021, H&M reported a 9% rise in net sales to SEK 55.6bn (£4.68bn), despite predictions from analysts that easing global restrictions would lead to a 14% rise for the fashion giant.
In terms of two-year, pre-pandemic comparisons, sales for the quarter were down 11% of on Q3 2019. As a result, shares at the world’s second-largest fashion retailer were down 3% as H&M blamed ongoing temporary store closures across its international estate during the period for its lagging recovery.
“Lockdowns and restrictions have continued to hamper development, particularly in Asia. However, as restrictions have been eased, sales in store have picked up in many markets while online sales have continued to increase,” it said in a statement.
H&M returned to profit in its April-June quarter from a loss a year earlier due to the pandemic, with sales 4% higher than in 2019, but this quarter has dropped off and left it lagging behind its main rival Inditex.
The fashion giant, which owns Zara, reported a 7% rise in net sales in its third quarter today compared to pre-pandemic trading.
Despite all this H&M said its “strong recovery” continues with more full-price sales and good cost control.
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