Fashion chain H&M has revealed weaker-than-expected sales over the latest quarter after demand was weighed down by chilly weather.
The Swedish retail giant, however, added that June trading has started well amid improving conditions, driving an increase in shares in early trading.
It told investors on Thursday morning that net sales were “flattish compared with last year” over the three months to May 31, with revenues to 57.61 billion Swedish kronor (€4.97 billion).
Analysts had predicted the company would report a 1 per cent sales increase for the period, after H&M had already flagged in late March that demand for spring and summer styles was being impacted by cooler weather.
In a statement, the firm said: “Sales in the second quarter were affected by unfavourable weather conditions compared to the corresponding period last year on several of the H&M group’s large markets.
“June has got off to a good start.”
Analysts from Jefferies said: “This is a clear lag to global peers, partly explained by a more mature US footprint and the impact of cold weather in May in parts of Northern Europe.”
It comes a week after Spanish rival Inditex, which owns Zara, revealed a 13 per cent surge in sales – up 15 per cent with currency movements stripped out – over the year to April as it shrugged off pressures on consumer finances.
Inditex had said sales growth remained in double digits, up 16 per cent on a constant currency basis, since May 1 as it said “spring/summer collections continue to be very well received by our customers”.
