H&M hit by worst sales for three years

BUDGET fashion retailer H&M yesterday reported its worst monthly sales figures since 2009 as inclement weather and worsening economies in Europe hit demand for spring clothing.

Total sales in April fell 1 per cent, while like-for-like sales dropped 10 per cent in the year, in both cases the biggest drop since August 2009.

H&M said: “Sales in April have mainly been affected by unfavorable weather, but also by a very negative calendar effect.”

In March, the retail giant said warm weather had brought a spike in sales, a theme echoed by Scottish retailers.

H&M has 2,500 stores in more than 40 countries, but makes the bulk of its sales in Europe.

The Stockholm-based retailer last year saw demand ease in the crisis-hit eurozone as it struggled with rising wages in manufacturing centres in Asia and higher transport costs.

Last month the company had warned that unfavorable weather and the fall of the Easter holidays would hit April’s sales.

Sydbank analyst Nicolaj Jeppesen said: “Last month was very good and we see the negative effect this month. Overall it is not as bad as it could be.”

ERIKKA ASKELAND