H&M (STO: HM-B) Monthly Sales Update: Sales Slow Down in February

Executive Summary

• H&M reported total sales rose by 3% year over year in local currencies in February 2017. This compares to year-over-year sales growth of 8% in January. Sales in February were negatively impacted by 4% due to a calendar impact, since 2016 was a leap year.
• The total number of stores grew by 10.7% year over year to 4,393, as of February 28.
• Sales growth lagged store growth by 766 basis points in February, expanding from the 266-bps difference in January.
• H&M also reported total sales rose by 4% year over year in local currencies in 1Q 2017, the period from December 1, 2016 to February 28, 2017. During the period, sales including VAT amounted to SEK54.4 billion (US$6.0 billion), an increase of 7% year over year, while sales excluding VAT amounted to SEK47.0 billion (US$5.2 billion), up 8% year over year.