H&M’s sales come in 15% lower in the fiscal fourth quarter

Hennes & Mauritz AB (ETR: HMSB) said on Tuesday that its sales in the fiscal fourth quarter came in 15% lower than last year – a slightly narrower decline in quarterly sales than expected. The company said that a quick recovery in sales that started in the third quarter kept its momentum in Q4 as well.

On a year-to-date basis, H&M shares are currently about 5% down in the stock market despite an over 70% growth since its low in March. Learn more about how can you start trading on the stock market.

H&M reports a 20% decline in full-year sales

H&M said that its sales in the quarter that concluded on 30^th November printed at £4.68 billion. According to FactSet, experts had forecast a lower £4.65 billion of sales for the fashion retailer in the recent quarter. In the prior quarter (Q3), the clothing company had noted a 19% year over year decline in sales, as per the report published in October.

In local currencies, the Swedish multinational said its sales posted a 10% annualised decline in Q4. H&M also highlighted on Tuesday that its full-year sales registered at £16.67 billion that represents a 20% year over year decline. In local currencies, its annual sales saw a narrower 18% decline in the recently concluded financial year.

The Stockholm-based company blamed the ongoing Coronavirus pandemic for its dovish performance this year. H&M said that the global COVID-19 restrictions pushed its stores into temporarily shutting down and weighed on foot traffic, especially in fiscal Q2, resulting in a sales decline.

H&M to publish its detailed annual report on 29^th January

H&M said that sales in local currencies were down by only 3% in the period from 1^st September to 21^st October. From 22^nd October to 30^th November, however, the retailer reported a massive 22% decline as compared to the same period last year, due to the second wave of the novel flu-like virus that pushed governments into imposing new restrictions.

H&M is scheduled to publish its detailed annual report on 29^th January. The fashion retailer is currently being investigated by a Swedish government agency over report of racial discrimination.

Hennes & Mauritz performed largely upbeat in the stock market last year with an annual gain of more than 50%. At the time of writing, it is valued at £23.78 billion and has a price to earnings ratio of 101.70.