H&M and Inditex reveal sales recovery despite supply disruption

The pair said they have both seen revenues return to at least pre-pandemic levels over the latest trading period.

A branch of H&M on Oxford Street, central London (Yui Mok/PA) (PA Archive)

H&M and the owner of Zara Inditex have both seen sales rebound despite continued challenges from the pandemic and supply chain disruption.

The pair said they have both seen revenues return to at least pre-pandemic levels over the latest trading period.

Swedish retailer H&M (Hennes & Mauritz) told shareholders its “strong recovery” has continued despite some restrictions remaining in place.

The company said its group sales for the quarter to November 30 “were back at the same level as in the fourth quarter of 2019”, and 8% higher than the same quarter last year.

These results are very satisfactory and demonstrate once again the solidity of our business model, the quality and commitment of our teams, and the potential being realised by our strategy of fully integrating stores and online

Pablo Isla, Inditex

It said that about 100 stores, mainly in South East Asia were shut at the start of the quarter, with this rising to 115 temporary closures by the end of the period.

Elsewhere, the world’s largest fashion retailer, Inditex, said its net income hit a record high for the three months to October as sales rose by 10% against 2019 levels, and 21% against last year.

Store and online sales from the start of November to December 10 were also up 10% against 2019 levels.

The Spanish group, which owns the Pull & Bear and Bershka brands, also told investors that its Autumn/Winter collection has been “very well received” by customers.

Inditex’s executive chairman, Pablo Isla, said: “These results are very satisfactory and demonstrate once again the solidity of our business model, the quality and commitment of our teams, and the potential being realised by our strategy of fully integrating stores and online.”

Laura Hoy, equity analyst at Hargreaves Lansdown added: “Zara owner Inditex should have been riding high this morning after confirming that sales are firmly in front of pre-pandemic levels.

“Add to that strong growth in online, a more concentrated store estate, and the near completion of efforts to migrate to a new online platform, and the group’s in a strong position heading into the new year.

“But shares failed to rally following the rosy report as inflation-related worries cast a shadow over the entire sector.”