H&M sales up strongly in March, April likely to look weaker

H&M group’s total sales in March 2012 with Value Added Tax included in local currencies grew by 26% vs. March 2011. The comparable unit number shows a 16% sales growth. The company said that favourable weather and positive calendar effect played a part in the positive development. The comparison period last year was particularly weak.

These temporary issues will be reversed in April and the company said a negative effect will thus be seen in headline numbers for the ongoing month, particularly since last year April was a very strong month. Even after correcting for these seasonal and one-off factors, the sales development is showing a good trajectory for 2012 so far.

On the 31st of March the company had added 270 shops vs. last year, pushing the total up to 2517. Even though the company had already given a good proxy for March sales in its Q1 report, when it said sales were up by 22% for March 1-27 period, the markets have taken them positively and the stock has climbed 1.5% approaching home stretch of the trading day.