Improving economies boost H&M's sales

Swedish fashion giant Hennes & Mauritz (H&M) saw like-for-like sales rise sharply in July as the company reaped the benefit of an improving global economy and gained market share.

The world's third-biggest retailer by turnover said sales at stores open more than a year were up 10 per cent, topping the most bullish market forecasts.

Total sales in the month, which include newly opened stores, were up 21 per cent, also beating expectations.

H&M gave no detailed comment but analysts were impressed by the figures.

Soren Lontoft Hansen, an analyst at Sydbank, said sales benefited from improved consumer sentiment, hot weather and relatively easy comparison figures from last year, as well as appealing fashions that were helping H&M in key markets such as Germany and Sweden.