STOCKHOLM (dpa-AFX) - Shares of Hennes & Mauritz AB (HNNMY.PK, HMRZF.PK, HEN.L), popularly referred to as H&M, increased around 2 percent in early morning trading in Stockholm after the Swedish apparel retailer Tuesday reported sales growth in the month of June, supported by new store opening, despite negative calendar effects.
Total sales in the month of June, including value added tax or VAT, advanced 12 percent from last year in local currencies.
As warned earlier, sales in June were hut by negative calendar effects of 3 to 4 percentage points. In June last year, the company's sales had increased 13 percent.
The sales growth in June is lower compared to preceding month of May, when the company reported 19 percent increase in total sales including VAT in local currencies, positively affected by calendar effects of about 3 to 4 percentage points. The increase is lower compared to a 17 percent growth in April.
The total number of stores amounted to 3,301 on June 30, 2014, versus 2,926 on June 30, 2013.
For 2014, the company's target is to open 375 new stores. It was announced that Australia, the Philippines and India will become new H&M countries in 2014, and Peru and South Africa will join in 2015. It intends to increase the number of stores by 10-15 percent annually with continued high profitability, while increasing sales in comparable units.
H&M is slated to publish percentage sales development for July on August 15.
The H&M stock is up 5.70 Swedish kroner or 2.01 percent in early morning trading in Stockholm at 288.80 kronor.
Copyright RTT News/dpa-AFX