H&M to launch website as profits beat expectations
H&M will launch a transactional website in the UK for autumn 10 after third quarter profits beat expectations.
H&M’s pre-tax earnings in the nine months to the end of August were up 4% to SEK 4.77bn (£428m) compared with a forecast SEK4.75bn (£426m), and SEK4.59bn (£412m) last year.
However year-on-year sales fell 3% in local currencies compared with an expected rise of 5%.
For the month of August, total sales fell by the same amount, but like-for-like sales plummeted 11%.
UBS analyst Andy Hughes said the fall was down to a lack of stock. “H&M seems to have run out of Spring/Summer stock as a result of very cautious budgets. Other retailers have been equally cautious but have been able to chase stock to avoid this,” he said in a note.
So far this year H&M has opened 85 stores and closed nine, with the total now numbering 1,840, of which 31 are franchise outlets.