H&M sales rise – but there’s a catch
H&M sales grew by the fastest rate in three years during the latest quarter – but analysts suspect it is due to discounting of inventory and favourable currency swings.
According to a stock exchange filing, H&M revenue rose 12 per cent to 56.4 billion krona (S$6.23 billion) in the November quarter.
But the fast-fashion retailer has been battling to move a huge inventory, estimated in March as worth a staggering $4.3 billion.
This week’s filing covered only sales, with full details of H&M’s trading performance set to be revealed on January 31.
Some analysts have described it as “possible” the sales growth was not profitable given sweaters have been selling for as little as $10 in recent months.