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.

Henry Saker-Clark
Wednesday 15 December 2021 13:45 GMT
A branch of H&M on Oxford Street, central London (Yui Mok/PA)
A branch of H&M on Oxford Street, central London (Yui Mok/PA) (PA Archive)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

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.”

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in