Cold weather affects H&M’s sales performance

  • H&M reports flat sales in Q3 due to cold weather impacting trading
  • Net sales slip 3% to SEK 59bn (£4.3bn) from last year
  • Gross profit margin at 51.1%, up from 50.9% last year
  • Operating margin forecast lowered below 10% for the year
  • Autumn collection well received, September sales expected to increase by 11%
  • CEO Daniel Ervér highlights focus on customer offering and sustainability

H&M Group has reported flat sales for the third quarter due to cold weather impacting trading, with net sales slipping 3% to SEK 59bn (£4.3bn) from SEK 60.9bn (£4.5bn) last year. Gross profit margin increased to 51.1%, up from 50.9% in the previous year. Despite the challenging start, CEO Daniel Ervér stated that they are concluding the quarter with sales on par with last year in local currencies and maintaining good cost control. The autumn collection has been well received, and September sales are expected to increase by 11%. H&M is focusing on customer offering improvements and sustainability while facing competition from Zara owner Inditex.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about H&M’s sales performance in the third quarter, including specific numbers and comparisons to previous years. It also includes quotes from the CEO discussing the challenges faced by the company and their plans for future growth. The article is focused on the main topic without any significant digressions or personal opinions presented as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about H&M’s sales performance and offers some insights into the challenges faced by the company due to weather conditions and competition. It also mentions the CEO’s plans for future growth and investments in the brand. However, it could benefit from more analysis of long-term trends or possibilities and a deeper exploration of the consequences of decisions on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: H&M Group’s sales and operating margin
Financial Rating Justification: The article discusses H&M Group’s financial performance, including flat sales in key markets, a change in outlook for the year’s operating margin, and its impact on the company’s expectations. It also mentions competition with other fashion retailers like Zara owner Inditex.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article, and it focuses on H&M Group’s sales performance and challenges faced due to weather conditions.

Reported publicly: www.retailgazette.co.uk