How has H&M’s Q4 sales impacted share price?
Swedish clothing retailer H&M has given a preview of its Q4 earnings, which is below industry estimates.
Swedish fashion retailer Hennes & Mauritz AB (H&M) revealed on Monday, 16 December, that sales for the fourth quarter of 2019 grew nine percent over the same period last year.
Sales for the three months ending 30 November has reached 61.7 billion Swedish krona (US$6.56 billion), which is below industry expectations by seven percent.
A FactSet poll of 15 analysts had put the estimate at 66.06 krona.
According to the company, the lower sales were due to ‘calendar effects’.
‘Sales development for the quarter compared with the previous year was affected by calendar effects, mainly because Black Friday this year fell a week later, i.e. just before the end of the month of November,’ the company said in a statement.
‘Therefore some of the big Black Friday online sales will not be recognised until December,’ H&M added.
Following the statement, H&M’s share price opened Monday’s market at 190.50 krona per share, slightly below last week’s closing price. As at 9.53m Stockholm time, price had climbed to 193.10 krona.
Year-on-year, the mass clothing brand’s share price is up 22%.
The company’s full Q4 financial report will be released on 30 January.
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