Affected By Continued Warm Weather, H&M'S September Performance Hit A 13 Month Low.

In recent months, European retailers have been trapped by the exceptionally warm weather and the lack of fashion trends.

Next Plc CEO Simon Wolfson said business performance at the beginning of this month was close to the performance during the recession.

H&M group spokesman also said business risks are rising, and price wars between industries are imminent.

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It has been revealed that in the past few weeks, competitors in the industry seem to have been in a mess and have already begun to offer discounts at the beginning of the season.

By the end of September, the total number of H&M stores in the world was 4204, compared with 3733 in the same period last year.

The group plans to expand its business in 11 new markets this year and open 425 new stores worldwide. The Group expects to enter other new markets next year, including Columbia, Iceland and Kazakhstan.

News from Paris, fast fashion retailer in Sweden

The September sales report was released, which was negatively affected by the continued warm weather. In September, the group's sales increased by only 1% over the same period last year, lower than analysts' expectations and hit a 13 month low, the slowest month since August last year, resulting in a sharp decrease of 1.1% in group gross margin.

Anne Critchlow, an analyst at Societe Generale, pointed out that from a weather point of view, in September,

It was a tough month, but H&M's sales in the past year have been disappointing.

The company pointed out that the slowdown in sales growth was also affected by the increase in price and purchase costs. In August, group sales recorded a 7% rise, but it was 10% slower than the July sales increase.

The group said that after a weak fall, the company will continue to cut prices in the fourth quarter, which will further reduce the performance of the group in the current fiscal year.

As of press release, the group's share price has dropped 2.01% to 253.3 kronor per share, and its share price has fallen by more than 14% in the past 6 months.

H&M predicts that 1 or 2 new brands will be launched in 2017. As of now, the group's brands include H&M, Other Stories, Cheap Monday, COS, Monki and Weekday.