How did two of high street’s largest retailers fare in recent months? Last week Inditex and H&M posted positive sales numbers. Here’s a closer look at their sales.
H&M Posts Modest Sales Gains in Q4
H&M missed analysts’ projections for November with a sales increase of 9 percent from the previous month. The Swedish fast fashion giant saw stocks fall by 4.6 percent on the announcement.
In the fourth quarter, ending November 30, the company reported a 7 percent sales increase to Skr 61.1 billion ($6.5 billion). Similarly, sales were up 7 percent for the year to Skr 222.8 billion ($24.0 billion).
The company didn’t provide a statement with the results, but in the past, it has blamed weather for its disappointing performance. Whatever the reason, H&M continues to lag behind fast-fashion frontrunner Zara’s parent company, Inditex—which posted 11 percent sales growth for its first three quarters. This has analysts worried about how the company is structured in the face of Zara’s unbeatable speedy supply chain.
Read more at Sourcing Journal.
Inditex Continues Sales Rise in Q3
While earnings reports from other retailers have been a mixed bag, it’s no surprise that Spanish mega-merchant Inditex’s numbers are up.
Net sales spiked 11 percent for the nine months ending October 31, 2016, totaling 16.4 billion euros. Sales from November 1 to December 12 are up 16%.
The company reported a 9 percent increase in net profits to 2.2 billion euros for the first three quarters compared to the same period in 2015.
In addition to having an e-commerce presence in 41 markets, the company is now taking over phones with a move into mobile, launching mobile payment in all of its stores in Spain in September. The retailer’s InWallet app is based on proprietary technology that allows shoppers to manage both online and in-store purchases across all eight of its brands.
Read more at Sourcing Journal.
