PARIS — H&M reported net sales inched up 3 percent over the summer season, compared with the same period a year ago.
The Swedish retailer, which operates Arket, Cos, Monki, &Other Stores and Weekday in addition to its core H&M stores, noted that sales had slowed in the three months from June 1 to Aug. 31.
“The third quarter got off to a weak start, in common with the industry in many of the group’s major markets,” the company said in a short statement.
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It is looking forward to a stronger fall-winter season, it said. “Sales improved sequentially during the quarter, with a better start for the autumn collections than last year,” the company added.
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Net sales totaled 55.58 billion Swedish kronor, or $5.3 billion at current exchange.
In local currencies however, sales were down 4 percent, indicating a slowdown from its strong first-half, when sales in local currencies were up 15 percent for the fast-fashion retailer.
H&M ended the first-half with $1.6 billion in cash on hand, and has earmarked nearly $300 million to finance a stock buyback program to reduce capital and shore up its holdings. As of Sept. 9, the company has repurchased nearly 1.22 million of its own B-series shares.
H&M has also been in the headlines with legal and regulatory challenges due to its sustainability claims and programs. A lawsuit in the U.S. has called it out for “greenwashing,” while it has faced criticism from over its use of “misleading” sustainability scorecards that have since been removed.
H&M results stand in contrast to competitor Inditex, which reported strong first-half numbers Wednesday, with profits up 41 percent and surging sales. Inditex, which operates Zara, Pull&Bear, Bershka and Massimo Dutti, said that consumer demand remains strong despite cost-of-living pressures.
H&M will reveal more detailed figures for the first nine months of its fiscal year on Sept. 29.