By Nick Vinocur and Veronica Ek
STOCKHOLM, Dec 15 (Reuters) - Swedish fashion retailer Hennes & Mauritz undershot expectations with a 9 percent fall in same-store sales in November, but said on Tuesday the Christmas shopping period had started strongly.
High street retailers have been squeezed by the global downturn as rising joblessness -- and the fear of losing jobs -- have led shoppers to cut back sharply on discretionary spending.
H&M said total sales in local currencies rose 1 percent year-on-year in November.
However, sales picked up in the first two weeks of December, rising around 11 percent.
While monthly same-store sales fell short of expectations, analysts were more optimistic about H&M's sales prospects for the Christmas shopping period.
'November sales were a bit disappointing, below my estimates and below market estimates,' said Soren Lontoft Hansen, analyst at Sydbank, adding early December sales were 'positive'.
'It is also also positive that they opened 250 stores in the full year, while they had guided for 240,' he said. 'That shows H&M is using the economic downturn to strenghten their position.'
November sales compared with an average forecast for a fall of 5.5 percent at stores open more than a year and a 4.7 percent increase in total sales.
Shares in the company, which have fallen 11.6 percent since the start of the year, were down 0.8 percent by 0840 GMT.
H&M sales have disappointed for several months as shoppers sought cheaper alternatives, notably online, where British internet-only retailer ASOS has seen rising sales.
But there are signs consumers are returning to stores.
Inditex, Europe's biggest clothing retailer and owner of the Zara chain, said earlier this month sales had picked up heading into the key Christmas period, though it too has seen like-for-like sales squeezed by the downturn.
Evli Bank analyst Anders Wiklund said despite a generally gloomy picture, there was a chance H&M's same-store sales for December could turn positive. 'There is a gleam of light.'
(Editing by Dan Lalor) Keywords: H&M/ (Stockholm Newsroom, tel: +46-8-700 1017, e-mail: stockholm.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
STOCKHOLM, Dec 15 (Reuters) - Swedish fashion retailer Hennes & Mauritz undershot expectations with a 9 percent fall in same-store sales in November, but said on Tuesday the Christmas shopping period had started strongly.
High street retailers have been squeezed by the global downturn as rising joblessness -- and the fear of losing jobs -- have led shoppers to cut back sharply on discretionary spending.
H&M said total sales in local currencies rose 1 percent year-on-year in November.
However, sales picked up in the first two weeks of December, rising around 11 percent.
While monthly same-store sales fell short of expectations, analysts were more optimistic about H&M's sales prospects for the Christmas shopping period.
'November sales were a bit disappointing, below my estimates and below market estimates,' said Soren Lontoft Hansen, analyst at Sydbank, adding early December sales were 'positive'.
'It is also also positive that they opened 250 stores in the full year, while they had guided for 240,' he said. 'That shows H&M is using the economic downturn to strenghten their position.'
November sales compared with an average forecast for a fall of 5.5 percent at stores open more than a year and a 4.7 percent increase in total sales.
Shares in the company, which have fallen 11.6 percent since the start of the year, were down 0.8 percent by 0840 GMT.
H&M sales have disappointed for several months as shoppers sought cheaper alternatives, notably online, where British internet-only retailer ASOS has seen rising sales.
But there are signs consumers are returning to stores.
Inditex, Europe's biggest clothing retailer and owner of the Zara chain, said earlier this month sales had picked up heading into the key Christmas period, though it too has seen like-for-like sales squeezed by the downturn.
Evli Bank analyst Anders Wiklund said despite a generally gloomy picture, there was a chance H&M's same-store sales for December could turn positive. 'There is a gleam of light.'
(Editing by Dan Lalor) Keywords: H&M/ (Stockholm Newsroom, tel: +46-8-700 1017, e-mail: stockholm.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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