H&M sales hit by hot weather, but still surge

Swedish clothing retailer Hennes & Mauritz (HM-B.SK) announced on Thursday that sales increased 7% in local currencies in August, but hot weather weighed on its performance.

“Sales development in August had a very good start. But sales were negatively affected in the second half of the month by exceptionally hot weather in most of the group’s markets,” the company said.

In the third quarter ended Aug. 31, sales excluding value-added tax rose roughly 6% to SEK48.98 billion ($5.77 billion), from SEK46.02 billion in the same period a year earlier.

Including VAT, sales in the third quarter converted into Swedish kronor rose around 6% to SEK56.80 billion from SEK53.42 billion. In local currencies, sales in the third quarter, including VAT, rose 8%.

H&M had 4,135 stores by the end of August, up from 3,675 on the same date last year. Full earnings figures for the third quarter will be published on Sept. 30.

Source: MarketWatch