H&M loses sales mojo

Investors are disappointed with clothing giant H&M’s October sales, which were unexpectedly low. Sales took a 5% hit compared to October last year. Total sales though, rose 4%, but that is less than forecast, a small return for the 300 new stores opened last year. The company said the results were because of an unusually warm autumn and the crisis, which forces people to save money. More than half of H&M’s revenues come from Central Europe. Experts however point to another reason – diversification. For H&M’s main rival, Spain’s Inditex, brands other than Zara account for 62% of all its outlets. At H&M, by contrast, the non-flagship brands represent only some 5% of total stores. Zara famously needs just a few weeks to develop a new product and get it to stores. H&M collections come traditionally twice a year. At the same time, the Swedish group focuses on its ‘top-guests collaborations’, that is, famous designers working on collections for H&M, to make high fashion affordable for everyone. H&M has started selling a Maison Martin Margiela collection. The retailer is counting on it to attract attention over the winter holidays. But investors are parting with their money less willingly than the customers, and were reluctant to buy on the stock market. H&M shares lost 2.96% at the close in Stockholm. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX BROADCAST SCRIPT Investors are disappointed with clothing giant H&M’s October sales, which were unexpectedly low. (GRA 1) Sales took a 5% hit compared to October last year. Total sales though, rose 4%, but that’s less than forecast, a small return for the 300 new stores opened last year. (OUT) The company said the results were because of an unusually warm autumn and the crisis, which forces people to save money. More than half of H&M’s revenues come from Central Europe. Experts however point to another reason – diversification. (GRA 2) For H&M’s main rival – Spanish Inditex – brands other than Zara account for 62% of all its outlets. At H&M, by contrast, the non-flagship brands represent only some 5% of total stores. (OUT) Zara famously needs just a few weeks to develop a new product and get it to stores. H&M collections come traditionally twice a year. At the same time, the Swedish group focuses on its ‘top-guests collaborations’, that is, famous designers working on collections for H&M, to make fashion affordable for everyone. H&M has started selling a Maison Martin Margiela collection. The retailer is counting on it to attract attention over the winter holidays. (GRA 3) But investors are parting with their money less willingly than the customers, and were reluctant to buy on the stock market. H&M shares lost ,,, at the close in Stockholm.