Hennes and Mauritz, Europe's second-biggest clothes retailer, reported June sales that missed estimates after growth slowed in the latter part of the month.
Revenue at stores and operations open at least a year rose 3 per cent compared with the same month a year earlier, the Stockholm-based company said in a statement today.
The monthly growth was the strongest since September, yet was less than the 4.1 per cent expected in a SME Direkt survey.
"We believe the improved performance in comparison to previous months may be discount-driven after a disappointing spring/summer season led to a higher level of inventory," analyst Allegra Perry at Cantor Fitzgerald said in a note.
H&M rose 0.5 per cent to 238.30 kronor at 9.12am in Stockholm trading, largely mirroring the broader market.
H&M’s total sales advanced 13 per cent last month, compared with a predicted 13.5 per cent increase.
When reporting second- quarter earnings June 19, the retailer said revenue from June 1 to June 17 rose 14 per cent.
Today’s numbers therefore suggest a slowdown in the second half of the month, Ms Perry said.
H&M said it had 2,926 stores at the end of June, up from 2,596 a year ago. It plans to open 350 this year.
Bloomberg
