H&M eyes better winter after sales slip 7%

Sales at Hennes & Mauritz (H&M), the world’s second- largest fashion retailer, fell 7 per cent last month as unusually-warm weather across Europe dented demand for autumn clothes.

The Swedish chain – which runs 2,300 stores in 41 countries, including 17 in Scotland – has also been hit by weak consumer confidence. The firm is often seen as better positioned to cope with a downturn than its peers, thanks to its geographic spread and low prices. But it has seen profits fall for four consecutive quarters, squeezed by high costs and Sweden’s strong currency.

H&M, which will launch a collection by Italian fashion icon Donatella Versace in November, has said that the negative effect from high cotton prices would remain in the fourth quarter, but that the outlook was brighter after that.

Analysts said H&M’s sales were a disappointing, but should pick up as the weather turns colder.

Nicolaj Jeppesen, an analyst at Sydbank, said: “We see that the weather in October has changed in most of the European markets, which I believe will drag the customers to the stores. I think we’ll see a better October.”