For the month of November, Swedish fashion retailer Hennes & Mauritz disappointed investors and experts by posting a 9% decline in same-store sales on Tuesday, but it did stress that the Christmas shopping season has started much strongly than expected.
Local sales, as confirmed by the company, surged by a mere 1% year-on-year for the month, but for the first 2 weeks of December, the sales have been much faster and have recorded a rise of nearly 11%.
Despite the fact that sales have declined in November, analysts are much optimistic about the future of the retailer, in particular sales during the Christmas period.
"November sales were a bit disappointing, below my estimates and below market estimates" said Soren Lontoft Hansen, analyst at Sydbank, while stressing that December sales have been positive. "It is also positive that they opened 250 stores in the full year, while they had guided for 240. That shows H&M is using the economic downturn to strengthen their position", he added.
Shares of H&M, however, have been promising, rising as much as 30% since the start of the year, and hiking to SEK396.60 on Monday.
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