H&M sales soar 21% as retail sector picks up

H&M's sales at its established stores rose sharply in July from a year earlier as the company reaped the benefit of an improving global economy.

The Swedish retailer, the world's third biggest by turnover, said sales at stores open more than a year were up 10 percent.

Total sales in the month, which includes newly opened stores, were up 21 percent, also much better than the most optimistic analyst had expected.

The average forecast in a Reuters poll of analysts was for a 1.7 percent rise in like-for-like sales, with total sales up 11.7 percent.

The fashion chain, known for its sharp designs and low prices, had a slow spring season while the global economy remained rocky, but summer has been better.

"Fantastic sales, a heap better than expected," said one analyst who declined to be identified.
The strong figures come against a relatively subdued picture in H&M's main markets.

In Germany, H&M's largest market, apparel sales inched up 1 percent in July from a year earlier, according to industry journal Textilwirtschaft. In its third-biggest market, Sweden, the HUI/Stil index for clothing sales were up 1.1 percent.
A second analyst said that H&M was recovering market share it lost during the downturn last year when consumers made do with even cheaper brands.

In June, the clothing chain's same-store sales were up 9 percent while total sales jumped 20 percent.

H&M does not release absolute sales figures, only the percentage change in local currencies and does not comment on the figures.