H&M, the world’s second-largest fashion retailer, experienced an underwhelming sales performance for the quarter ending August 2021, with a rise in revenue that was lower than expected. The company announced on Wednesday that sales had increased by 9% from the same point last year, meaning that the Swedish fashion retailer has still not been able to rebound back to its pre-pandemic sales levels.
The sales growth, a revenue of 55.6 billion crowns ($6.46 billion), is significantly lower than analysts’ projections of a 14% rise.
Compared to 2019’s pre-pandemic figures, net sales are still down by 11%. The fashion retailer was able to hit a peak sales figure of 62.6 billion crowns in the year preceding the coronavirus outbreak.
H&M explained during an official statement that while the easing of lockdown restrictions has facilitated some sales growth, many regions, such as Asia, continue to implement strict health and safety guidelines that limit the potential for the development of further brick-and-mortar sales opportunities.
The Swedish fashion company retains confidence in its ability to facilitate further revenue growth, however, explaining that, “sales in-store have picked up in many markets while online sales have continued to increase.”
