H&M Faces Challenging September Sales Due to Unseasonably Warm Weather — Retail Bum

H&M reported a rise in profits for the third quarter but noted that the unseasonably warm September 2023 weather in key markets had a detrimental effect on recent sales.

“Sales in the third quarter started strongly with pent-up demand for summer garments following a cold May in most of our major markets,” the retailer said in a press release. “The effect then gradually decreased during the summer. There was a weaker end to the quarter, with comparative figures affected by the temporary reopening in Russia in August last year. Having now moved into September, we can see that the start of the autumn season has been delayed because the month so far has been marked by unusually hot weather in many of our European markets.”

During the company’s earnings call, the fast fashion retailer also noted that it has been working toward offering the best prices and value as household living costs have significantly increased due to high inflation. In pursuit of this goal, the company is investing in technologies such as artificial intelligence (AI) and the supply chain. These investments have been vital in achieving flexibility, accelerated response times, and boosting precision in the procurement process. This, in turn, has given customers access to a broader and more relevant assortment.