H&M: monthly sales growth below expectations.
(CercleFinance.com) - Swedish fashion group H&M posted disappointing sales numbers in May, prompting the shares to fall over two per cent in early trading in Stockholm on Thursday.
The group's sales including VAT increased by 4 per cent in local currencies in May 2017 compared to the same month the previous year.
Consensus was aiming at 6 per cent.
H&M said sales were affected by tough market conditions in several countries in the first half of the month, before sales improved "considerably" in the second.
In a reaction note, Bryan Garnier cites challenging market conditions in Germany (17% of sales) and the US (12%), where the group must also cope with issues such as competition from other value players.
In the group's second quarter, during the period 1 March to 31 May, sales including VAT increased by 5 per cent in local currencies compared to the corresponding quarter the previous year.
After these numbers, Bryan Garnier reiterated its "neutral" stance on the stock with a fair value of 270 Swedish kronor, citing the significant increase in inventory levels as its main source of concern.
Shares at H&M, which did not elaborate much on its monthly performance, were down 2.4 per cent at 207.1 Swedish kronor, underperforming a 1.4 per cent fall in the European retail sector.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The group's sales including VAT increased by 4 per cent in local currencies in May 2017 compared to the same month the previous year.
Consensus was aiming at 6 per cent.
H&M said sales were affected by tough market conditions in several countries in the first half of the month, before sales improved "considerably" in the second.
In a reaction note, Bryan Garnier cites challenging market conditions in Germany (17% of sales) and the US (12%), where the group must also cope with issues such as competition from other value players.
In the group's second quarter, during the period 1 March to 31 May, sales including VAT increased by 5 per cent in local currencies compared to the corresponding quarter the previous year.
After these numbers, Bryan Garnier reiterated its "neutral" stance on the stock with a fair value of 270 Swedish kronor, citing the significant increase in inventory levels as its main source of concern.
Shares at H&M, which did not elaborate much on its monthly performance, were down 2.4 per cent at 207.1 Swedish kronor, underperforming a 1.4 per cent fall in the European retail sector.
Copyright (c) 2017 CercleFinance.com. All rights reserved.