H & M sales increase as renovation begins to pay off

STOCKHOLM – Swedish fashion retailer Hennes & Mauritz AB (HM-B.SK) announced Monday that sales have increased in the third quarter, while continuing to reorganize its logistics infrastructure to accelerate the supply chain and integrate operations. Online and in-store.

The turnover of the quarter ended August 31, excluding value-added tax, increased by 9% over the previous year to reach 55.82 billion Swedish kronor (6.16 billion dollars). Analysts surveyed by FactSet were expecting SEK 54.03 billion.

H & M has fallen behind its competitors in the transition to online sales, but its transition to adapt to the changing industry is starting to pay off and increase market share in many markets in the third quarter.

"However, revenue and cost growth in some of the group's major markets such as the United States, France, Italy and Belgium were significantly affected in the third quarter by the problems that arose during said in a statement.

"The new logistics systems enable a faster and more efficient supply chain, as well as a seamless integration of online stores and sites."

The retailer said sales including VAT in the third quarter reached SEK 64.8 billion, against SEK 59.38 billion, while sales, including VAT, in local currency increased by 4%.

H & M will release its full third quarter results on September 27, 2018.

-Write to Dominic Chopping at [email protected]; Twitter: @domchopping @WSJNordics