H&M’s September sales dented by supply delays after profit tops pre-pandemic level By Reuters
© Reuters. FILE PHOTO: Consumers go to H&M retailer at Instances Sq. in New York Metropolis, New York, U.S., Could 20, 2021. REUTERS/Eduardo Munoz
STOCKHOLM (Reuters) -Provide disruptions hampered H&M’s gross sales in September, the Swedish retailer stated on Thursday, after its June-August earnings surpassed expectations and pre-pandemic ranges.
Disruptions to the worldwide economic system throughout the pandemic have upset international provide chains, resulting in shortages of products in addition to containers, storage and drivers for the transportation of products, and inflicting a spike in transport prices.
“Gross sales in September 2021 have been barely increased than within the corresponding month the earlier 12 months in native currencies, although demand was not capable of be totally met due to disruption and delays in product circulation,” H&M stated.
Fiscal third-quarter pretax revenue on the world’s second-biggest trend retailer rose 158% from a 12 months earlier to six.09 billion Swedish crowns. Analysts polled by Refinitiv had on common forecast a 5.05 billion crown revenue.
In comparison with the identical quarter in 2019, earlier than the pandemic, revenue was up 22%.
“The H&M group’s improve in revenue for the quarter is especially a results of well-received collections with extra full-price gross sales, decrease markdowns and good value management,” Chief Govt Helena Helmersson stated in a press release.
H&M stated round 50 of its 5,000 shops remained quickly closed presently, in opposition to 180 in the beginning of June. On the top of the COVID-19 pandemic, most shops have been closed attributable to lockdowns and restrictions.
H&M stated an advantageous U.S. greenback alternate price had in its third quarter offset considerably increased costs for transport and uncooked supplies, however warned:
“Because the optimistic U.S. greenback impact subsides and the excessive transport and uncooked supplies costs stay, the general market scenario for buying prices within the fourth quarter will progressively turn out to be much less optimistic.”
The group proposed paying a dividend for 2020 of 6.50 crowns per share in November. It had stated in July that prospects of paying a dividend within the autumn have been superb, after it did not suggest one at its annual common assembly in Could.
H&M’s shares have been roughly unchanged at 0745 GMT.
Market chief Inditex (MC:), the proprietor of Zara, earlier this month additionally reported quarterly earnings above pre-pandemic ranges.
H&M didn’t touch upon its scenario in China, the place the group is struggling a backlash over feedback made in 2019 about staff’ rights within the Xinjiang province.
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