High street big gun H&M recorded a 9% increase in the group’s sales including VAT for the third quarter, from 1 June to 31 August 2018, up to SEK 64,800m ($7.34bn).
The group’s online sales increased by an impressive 32% during the same period. However, there were problems during the spring that arose during the implementation of new logistics systems in the US, France, Italy and Belgium. That led to costs of around SEK 400m in the third quarter. Sales in these markets decreased by 8% overall, while overall sales for the other 66 markets increased by 8% in local currencies during the quarter.
H&M has been very well received in the Ukraine market, and has had success with the launch of new brand, Afound, both in stores and online in Sweden. H&M CEO, Karl-Johan Persson, commented: “The rapid changes in the fashion industry are continuing and the H&M group is in an exciting transitional period. Our transformation work has contributed to a gradual improvement in sales development with increased market share in most markets during the third quarter, particularly in Germany, Sweden, Eastern Europe, Russia and China.
“In the US, France, Italy and Belgium, however, store sales were negatively impacted by the problems that arose when we introduced new logistics systems in these markets. Intensive work to correct the problems means they have now largely been resolved.”
For the nine months to 31 August 2018, sales including VAT at H&M increased by 3% to SEK 178,817m ($20.24bn).