H&M hits its revenue targets

FASHION giant H&M yesterday posted a slight rise in sales at established stores, up three per cent last month from 2009’s figure.

The Swedish retailer said total sales, which includes newly opened stores, were up 13 per cent in October.

Figures for overall sales and for stores open a year or more were exactly in line with analysts’ forecasts.

H&M, the world’s third-biggest clothing retailer by turnover, does not release absolute sales figures, only the percentage change in local currencies. It does not comment on sales figures.

H&M said tuxedos for men and tailcoats for women were the must-have products for this season.

The global recovery has helped the world’s third-biggest clothing firm by sales in recent months. September same store sales were up eight per cent while August saw a 14 per cent rise.

However, there are concerns that consumers will be worried by resurgent problems with government debt in the Eurozone, while recovery in the United States remains uncertain despite a new quantitative easing package by the Federal Reserve.

H&M is also seen facing further pressure from rising input costs which pushed its gross margin in the third quarter below market expectations.

Pre-tax profit in its fiscal third quarter – June to August – rose to 5.74bn Swedish crowns (£520m). Hennes has 76,000 employees worldwide and buys its goods from around 700 independent suppliers.

There are 2,000 Hennes stores in total. Meanwhile, the company has a team of 100 in-house designers.