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.