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Warm weather cools H&M sales

Tuesday, September 15, 2015 - 01:10

Fashion retailer Hennes & Mauritz reports its weakest monthly sales growth in more than two years. As Hayley Platt reports it blames unseasonably warm weather in many of its large markets in Europe.

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An unusually warm August in parts of Europe is being blamed for a monthly dip in sales at H&M. They grew by just 1 percent - the weakest rise in 2 and a half years years - and well below the 6 percent predicted by analysts. The world's second-biggest fashion retailer after Zara-owner Inditex had recorded double-digit growth in the previous 10 months. But Hargreaves Landsdowne's Richard Hunter says there's no need to panic. (SOUNDBITE) (English) HEAD OF EQUITIES, HARGREAVES LANDSDOWNE, RICHARD HUNTER, SAYING: "It's probably best not to extrapolate too much from one set of results because H&M and the part of the market in which it operates is to a large extent recession proof." H&M wasn't the only fashion retailer to suffer poor sales. In Germany, its biggest market, there was an industry-wide fall in clothing sales of 16 percent. Currencies were also a problem. (SOUNDBITE) (English) HEAD OF EQUITIES, HARGREAVES LANDSDOWNE, RICHARD HUNTER, SAYING: "The strengths in local currency and currency headwinds is something that we're hearing as a boardroom mantra form around the world at the moment." Spain's Inditex is due to report half year results on Wednesday. It's less exposed than H&M to northern and western Europe. And analysts are expecting a 25 percent rise in net profit.

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Warm weather cools H&M sales

Tuesday, September 15, 2015 - 01:10