Europe retail watch: Hennes & Mauritz (HMRZF.PK, HNNMY.PK) saw sales increase 2% Y/Y to 28.4B kronar ($4.39B) during FQ1 while profit slumped 10% to 2.46B kronar ($380M). Execs warn that 2013 will be challenging as a severe bout of cold weather delays the start of spring collections in key markets.
Hennes & Mauritz (HMRZF.PK, HNNMY.PK) beat expectations for a sharp decline in comparable store sales in November as it recorded 32.5B Swedish kroner ($4.87B) during the period. It's a sign of life for the European retail sector which could bode well for select U.S. retailers selling on the continent.
Retailers start to increase the number of plus-size lines as higher demand in the market pushes it to the point that revenue might make up for the extra costs for designs and materials. Hot Topic (HOTT -2.7%) with its Torrid brand has positioned itself as one of the fashion leaders in the sub-sector with a more independent and bold approach led by CEO Lisa Harper, while Fifth & Pacific (FNP -0.5%) and Hennes & Mauritz (HMRZF.PK, HNNMY.PK) are also making a push.
A profit warning from Swedish clothing seller Hennes & Mauritz (HMRZF.PK, HNNMY.PK) appears to have crossed the pond to taint select retail names in the U.S. Foreign exchange headaches and unseasonably warm weather contributed to a 4% decline in H&M's same-store sales after analysts had called for a gain, raising some questions on the sector only a week after Burberry's own warning rattled luxury names. Feeling the heat: NWY -2.7%, CBK -2.2%, BODY -1.6%, BONT -1.8%, SKS -2.5%.
H&M (HMRZF.PK, HNNMY.PK) same-store sales fell for the third month in a row in November, coming in at -1% vs. analyst expectations of +0.4%. Shaky economies and unusually warm weather helped keep consumers out of its stores.