H&M: June sales up 7%; scraps monthly numbers.
(CercleFinance.com) - Swedish fashion retailer Hennes & Mauritz on Monday posted a 7% rise in June sales in local currencies, in line with analysts' expectations.
However, broker Liberum said the performance unveiled this morning doesn't change its cautious view on the stock.
"We believe H&M remains in a difficult place suffering from a weakening of demand, with negative implied like-for-likes in major geographies, a lack of pricing power and a brand that now resonates less with customers than previously," the broker said.
H&M also said it would stop issuing monthly sales numbers, saying that a month is "far too short a period over which to assess how sales are developing."
Henceforth, the group will publish sales development per quarter instead of each month, just like "most of its peers," an analyst said.
At 231.3 Swedish kronor, H&M's shares are up 1% this morning, against a 0.4% percent rise for the STOXX Europe 600 Optimised Retail index.
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