H&M same-store sales fall 6 pct in April(70123)

H&M same-store sales fall 6 pct in April

From: Reuters

Swedish fashion giant Hennes & Mauritz reported a worse-than-expected 6 percent fall in same store sales for April on Monday, following a tough comparison year on year and unusually strong sales in March.

Last month the retailer posted first-quarter earnings well above expectations and racked up a 9 percent increase in monthly same-store sales, due in part to intense shopping activity at its stores over the Easter weekend.

But April same-store sales--sales at stores open for more than one fiscal year -- suffered from a comparison with a strong performance in the same month last year, coming in below a mean forecast for a 4.5 percent drop.

"You had an extremely strong April last year and you had a negative calendar effect," said Anders Wiklund, an analyst at Evli. "It's still slightly softer (than forecasts), partly due to the weather."

Total sales were up 4 percent, compared with a 6.1 percent rise seen in the Reuters poll.

H&M started its fiscal year well with three consecutive monthly rises in same-store sales, including December, which marked the end of a seven-month losing streak last year when recession hit consumer spending around the world.

Still, 2010 looks to be another tough year for H&M as much of its southern European market remains under pressure and the firm seeks to take advantage of growth in Asia while consolidating its presence in Northern Europe.

H&M same-store sales fall 6 pct in April

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