H&M Net Sales For The Two Quarter Were 57 Billion 474 Million For Four Consecutive Quarters.

The two quarter sales of Hennes & Mauritz AB (HMb.ST) Haines Maurice group (hereinafter referred to as "H&M group") are better than market expectations, but data show a slowdown in the last two months. The share price of the world's second largest apparel retailer fell by 4.7% to 146.76 kronor on Monday.

In the two quarter of 3-5, the H&M group achieved a net sales of SEK 57 billion 474 million, an increase of 10.6% over the same period last year of 51 billion 984 million kronor, an increase of 6% over the local exchange rate and an increase of four consecutive quarters.

But in view of the group's first quarter earnings report, it said that net sales in March were 7% higher than the local exchange rate. Kepler Cheuvreux analyst Fredrik Ivarsson estimated that growth slowed to 5.5% in 4 and May, and by 4% at the end of May, which was worse than the zero growth expected by Fredrik Ivarsson.

Last week, H&M group's main rival, Inditex SA (ITX.MC), said the net sales in the first quarter of 2-4 increased by 5% over the previous year. With Zara, Pull&Bear, Oysho, etc. brand The world's largest clothing retailer explained that sales in the second half of the season were affected by negative weather conditions in some markets, but stressed that the performance has improved significantly since May, and sales growth has increased to 9.5%.

　　 RB C Europe analyst Richard Chamberlain believes that the latest sales figures of H&M group reflect the continuous improvement of execution, and the share of the main market continues to improve. However, they have relatively cautious outlook on the outlook of profit margins, which include foreign currency purchase, new member plan and upward pressure on operational opening.

Flagship brand H&M began to slow down in 2015, and eventually evolved into a recession, resulting in a large number of unsold inventory backlog. At this time, management quickly invested heavily in upgrading digital sales, store concept and logistics supply chain, and worked hard to improve product supply and speed up the introduction of new brands. In Monday's announcement, management pointed out that customer satisfaction and recent sales growth proved that reform continued to lead the group in the right direction.

H&M group announced last week that it was founded in 2013. fashion Brand & Other Stories will first enter the Chinese market through Tmall this fall. At present, the brand's 69 stores are distributed in 18 countries and regions, mainly in the European market.

Hennes & Mauritz AB (HMb.ST) reported 148 Swedish kronor on Monday, down 3.9% throughout the day. Jefferies Group LLC analyst recommended "holding" the shares, and RBC Europe analyst Richard Chamberlain's rating is "flat market". Author: Lin Biying