H&M Group sees Q3 sales drop

H&M Group has reported a 4% decrease in net sales in local currencies for the third quarter ending 31 August 2022.

The owner of H&M, Monki and Cos revealed that net sales rose by 3% to £4.6 billion (SEK 57.4 billion) in the third quarter, compared with the corresponding period last year.

In a statement, H&M Group said: "The third quarter got off to a weak start, in common with the industry in many of the group’s major markets. Sales improved sequentially during the quarter, with a better start for the autumn collections than last year."

The group's nine-month financial report for the period 1 December 2021 to 31 August 2022 will be published on 29 September 2022.

Earlier this year, H&M Group released its financial results for the first half of the year, ending 31 May 2022. Net sales at the company increased by 20% to £8.4 billion (SEK 103.7 billion) as a result of collections being well-received, an increase in full-price sales and decrease in markdowns.

In July 2022, H&M Group announced its plans to initiate a process of "winding down" its business in Russia, due to operational challenges and an "unpredictable" future. The group had run operations in Russia since 2009, but in March 2022 paused all sales in Russia due to the war in Ukraine.