H&M Monthly Sales Growth 6 Percent, Lagging Forecasts

STOCKHOLM, Sweden — Budget fashion retailer H&M reported on Monday a 6 percent year-on-year increase in local currency sales in December, the slowest pace since September and lagging expectations.

Analysts polled by Reuters had on average forecast an 8 percent increase in the industry's important Christmas holidays shopping month, which is the first month of the Swedish group's fiscal first quarter.

H&M, the world's second-largest clothing retailer after Inditex , said that converted into Swedish crowns, sales increased by 10 percent. It did not comment on the figures.

In November, its growth was roughly unchanged from October at 9 percent, missing expectations for an acceleration on the back of demand for winter clothes.

H&M, which has the bulk of sales in Europe, has in the past year blamed several monthly sales misses on unseasonable weather. Like its rivals, H&M has underperformed Inditex, partly because the Zara owner has a supply chain that enables it to react more quickly to shifts in demand, making it less exposed to variations on weather.

H&M will publish its full earnings report for its fiscal year through November on Jan. 31.

By Anna Ringstrom; editor: Louise Heavens.