H&M has long reported monthly sales growth in local currencies, including VAT, as well as monthly store numbers. However, with its June figures, the company  has announced that it will no longer publish monthly sales results. H&M explained its decision as follows: “A month is far too short a period over which to assess how sales are developing; in fact, a single month’s sales can actually be misleading, since calendar and weather effects—among other things—may significantly affect the outcome.” The company will now publish quarterly sales figures on the 15th of the month in which an interim report is presented. H&M will publish sales results for 3Q17 on September 15 and sales for 4Q17 on December 15, 2017. In June, sales growth lagged store growth by 331 bps, a contraction from the 633-bps difference in May. Sales growth improved compared to both the previous month and 2Q17. In 2Q17, ended May 31, H&M reported that total sales in local currencies increased 5% year over year.

Source: Company reports/Fung Global Retail & Technology

Note on Sales Growth Versus Store Growth

Changes in the difference between sales growth and store growth suggest changes in the underlying sales growth rates, however, the measure should not be taken as indicative of comparable sales growth in absolute terms. The figures are calculated from rounded sales growth data and unrounded store growth data.