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H&M slips as first-quarter sales growth misses estimates

Published 03/15/2023, 06:14 AM
Updated 03/15/2023, 06:26 AM
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By Scott Kanowsky 

Investing.com -- Shares in H & M Hennes & Mauritz AB B (ST:HMb) slumped on Wednesday after the Swedish fast fashion retailer announced first-quarter sales growth that was below expectations.

The company said sales from December 1 to February 28 came in at SEK 54.87 billion (SEK 1 = $0.0952), representing an increase of 3% versus the corresponding period last year on a local currency basis. Bloomberg consensus estimates had called for an uptick of 4.21%.

Excluding Russia, Belarus and Ukraine, where sales were halted following the outbreak of war last year, the top-line increase was 7%.

Analysts at Jefferies said the results implied that trading in February was "disappointing," adding that the update likely confirmed that sales growth turned negative during the month.

The Jefferies analysts noted that the update will also quash "budding optimism" over a potential easing in a jump in cost of goods. Meanwhile, analysts at RBC Capital Markets flagged that pressure from input expenses likely will remain for most of the second quarter.

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