H&M reports monthly sales growth in local currencies and including value added tax (VAT), as well as monthly store numbers. The company does not report comparable sales in these monthly updates, and typically offers no commentary. For August, H&M commented, “exceptionally hot weather” in most of the group’s markets had a negative impact on sales. The performance in August was against undemanding comparatives: in August 2015 H&M sales rose just 1%. For the third quarter of 2016 that ended August 31, H&M reported sales including VAT increased 8% year over year, in local currencies. Sales including VAT converted to SEK increased by 6% year over year to SEK 56.8 billion (US$6.7 billion) in the third quarter, and sales excluding VAT increased 6% to SEK 49.0 billion (US$5.8 billion).

Source: Company reports/Fung Global Retail & Technology

Note on Sales Growth Versus Store Growth

Changes in the difference between sales growth and store growth may suggest changes in underlying sales growth rates, but 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.