World’s second largest fashion retailer H&M AB (STO: HM) has reported a larger than expected increase in sales in the three month period from March which signifies a rebound in demand after the pandemic.
According to the company, net sales are up 17% year-on-year or 12% when measured in local currencies at 54.5 billion crowns ($5.4 billion) in its fiscal second quarter. Citing Refinitiv data, analysts had on average forecast sales for the company of 52.8 billion crowns.
Nonetheless, this turnover is still below 57.4 billion crowns the company posted during the pre-pandemic second quarter in 2019. Similarly, the company’s competitor, Inditex also reported 80% quarterly profit bounce last week as after pandemic demand soars.
“Whilst in a less spectacular manner than Inditex last week, H&M also confirms today that the reopening process in Europe has led to strong demand conditions persisting in recent weeks,” said analysts at Jefferies.