Good news back in fashion as H&M sales rise again

H&M, the Swedish fashion chain popular on the UK high street, posted a second consecutive monthly rise in sales yesterday, fuelling hopes of a turnaround in 2010 after a seven-month losing streak last year.

H&M, whose extended name is Hennes & Mauritz, said sales edged up 1 per cent year-on-year in January, ahead of an average forecast of a 0.5 per cent rise at stores operating for more than one financial year.

In December, the company posted a 3 per cent increase in same-store sales, the first positive result since April, and beat expectations for its quarterly earnings.

Soren Lontoft Hansen, an analyst at Sydbank, said of the results: "That is another positive month, due to the fact that you have easier comparables and due to the fact that it seems that consumers are returning to the stores.

"They're not power shopping, but at least they are coming back."

H&M is expanding its footprint in Asia, but its largest market remains Germany, where it could soon be facing off against British discount retailer Primark.

H&M's stores in the UK are expected to receive a sales lift this Saturday from the launch of a one-off collection by Parisian designer Sonia Rykiel.