H&M’s July Comp Sales Stumble

H&M is inviting consumers to its Paris Show Collection preview at a special pop up store in New York, August 22 to 24 at  . Gansevoort Plaza on Gansevoort St. (between Hudson and 9th Ave.)

H&M is inviting consumers to its Paris Show Collection preview at a special pop up store in New York, August 22 to 24 at
. Gansevoort Plaza on Gansevoort St. (between Hudson and 9th Ave.)

Stockholm—U.S.-based retailers aren’t the only ones reporting softening sales. H&M, the world’s second largest fashion retailer, today reported its July comparable store sales measure fell, the first monthly drop since March.

Comparable store sales were down 1% in July from July 2012 compared with analysts’ average estimate for a 1% increase. Total sales were up 9% in local currencies, missing the 10% increase analysts had anticipated.

The July results were in stark contrast to H&M’s June report when comp sales rose 3%, the fastest pace in nine month.

CEO Karl-Johan Persson said in mid-June that new collections had sold surprisingly well to date. However, Persson said the increases could have been due to to pent-up demand after cooler weather held back spring shopping, rather than a rise in underlying demand.

H&M ended July with 2,940 stores, up from 2,603 a year earlier.

 

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com