H&M disappoints with worse-than-expected monthly sales

H&M sales in local currency added 9 percent in November compared to same period a year earlier. However, this increase wasn’t enough as the monthly sales fell short from market’s expectations.

Reuters polled analysts on the fast fashion giant’s monthly sales, gathering a 15 percent rise consensus estimate.

The retailer also reported net sales in September through November –which mark H&M's fiscal fourth quarter - totalled 52.7 billion Swedish crowns (4.54 billion pounds), up from the previous year same quarter’s 48.7 billion yet below a forecast 53.5 billion, reported Reuters.

In this regard, analysts expected H&M and other fashion retailers to have been hit by the warmer autumn weather as they failed to swap out collections of cold-weather items to attract shoppers.

H&M shares have suffered a near 9 percent fall over the last year, while rival Inditex’ stock does nothing but keep rising. Bloomberg’s analysis reveals that currently, Inditex trades on a forward price to earnings ratio of 28 times, a premium to H&M's 21 times.