Hennes & Mauritz, the Swedish retailer, has reported a 15% sales uplift in July, despite the economic gloom. The budget fashion chain saw a 3% increase in turnover for the month.
The figure, which includes stores that have been open for a least one financial year, beats analyst forecasts of 2.1% after June, and saw a decline of 2%. The increase comes despite a depressed retail market in Germany, the chain’s largest market, and is attributed to consumers becoming increasingly cost-conscious as pressure grows on spending.
The rise comes despite European retail sales falling for a second consecutive month in July. Record oil and food prices led to inflation rising to 4%, the highest level in 16 years.
H&M, the world’s third largest retailer by sales, has increased from 1,422 on July 31 last year to 1,601 this year. The portfolio includes 20 stores that it acquired following the take-over of retailer Fabric Scandinavien in March this year. It has also expanded its internet and catalogue sales in Germany and Austria over the past year.