H&M reported a 23 p.c rise in first quarter gross sales on Tuesday, which was consistent with market expectations, because the world’s second-biggest vogue retailer makes an attempt to construct on its restoration from the Covid-19 pandemic.
Shares in Sweden’s H&M, which didn’t give any remark in its assertion, have been down 3 p.c in early commerce as analysts targeted on the potential influence of the Ukraine disaster on its enterprise in Central and Jap Europe and wider world repercussions.
Internet gross sales in H&M’s fiscal first quarter from December by way of February, its seasonally slowest, have been up by 18 p.c in native forex phrases, at 49.2 billion crowns ($5.13 billion), in comparison with a median forecast from analysts polled by Refinitiv of 49.1 billion crowns.
Credit score Suisse stated in a be aware the figures implied a slowdown in local-currency gross sales progress to round 14 p.c in February, from the round 20 p.c flagged beforehand for December-January.
H&M earlier this month quickly closed its shops in Russia, which final quarter accounted for 4 p.c of group gross sales, becoming a member of a rising checklist of worldwide firms shunning the nation over its invasion of Ukraine.
RBC analyst Richard Chamberlain stated he had reduce revenue estimates for H&M for this yr and subsequent by round 10 p.c, pointing to the Russia retailer closures but additionally the very fact Central and Jap Europe account for some 12 p.c of group gross sales.
Lower than a month earlier than Russia invaded Ukraine, H&M had drawn a line beneath the pandemic, and a number of other robust years earlier than that, reporting a soar in revenue and saying it was climbing investments with the intention of doubling gross sales by 2030.
Credit score Suisse analysts famous that whereas Russia accounts for a small share of H&M’s gross sales, the Ukraine disaster may end in a fabric impact on world disposable revenue and demand.
Russia, which calls its actions in Ukraine a “particular army operation”, has proposed nationalising belongings of international corporations that go away within the wake of financial sanctions.
H&M will publish its full quarterly earnings report on March 31. Its greatest rival Inditex, the proprietor of Zara, is because of report quarterly outcomes on March 16.
By Anna Ringstrom; Editors: Niklas Pollard and Alexander Smith
Hennes & Mauritz AB chief government Helena Helmersson set an bold objective of doubling the quick vogue retailer’s gross sales by 2030 after she diminished reductions and began clearing out the corporate’s longstanding stock buildup.