Sales Growth In July H&M2012 Beat Market Downturn

Though the second largest in the world Latest fashion Retailer H&M's biggest market (Germany) is in a sluggish state of consumption, but consumer spending tightening shows signs of strong demand for cheap clothing, which is said to be a third month increase in sales in July.

The fast growing Swedish fashion company did not comment on monthly sales data. It said sales in July for at least a year had increased by 2%.

Total sales, including newly opened stores, increased by 11%.

According to most criteria, although H&M ranked Zara owner Inditex, shoppers paid attention to low price fashion, which made it relatively secure through the downturn.

H&M has stores in 44 countries and expands to emerging markets, and has already done most of its business in Europe.

"According to market data, H&M performance is relatively good," said StefanStjernholm, an analyst at Scandinavian Union Bank in Sweden. Looking at H&M's performance this year, we know that the market is indeed in a difficult period. Accordingly, I think H&M has implemented a good sales development strategy. "

NicolajJeppesen, an analyst at Sydbank, said Europe in July. Sales volume Sales continued to decline, and sales of the brand increased as a result of the development of the North American market.

He continued: "consumer confidence and the overall market climate (Europe) are rather sluggish. We expect that this state will continue. Therefore, we need to see that H&M can gain sales growth in North America and improve their position in the Asian market. "

July was the second month of the third fiscal quarter of H&M. The year-on-year sales in June increased by 3%, compared with 3% in the first half of the year.

In addition to the weak market performance, analysts worry that the weaker euro will have a longer impact on H&M. The company buys most of the goods in US dollars, while Europe is its largest market and profits are converted to Swedish krona, a strong performance.

The exchange rate between Krona and the euro is close to the highest level in 12 years, and is also at a disadvantage in the exchange rate with the US dollar.

　　 H&M It said that as of the end of the month, the company had a total of 2603 stores, consistent with the target of annual growth rate of 10% to 15%.