The world's second largest fashion retailer H&M has seen its July sales increase 16 per cent, compared to the previous year. Hayley Platt looks at what the company is getting right.
It's the world's second biggest fashion retailer. And H&M have just beaten expectations with a 16 percent year-on-year rise in sales for July. It's their 10th consecutive month of double digit growth. Kantar Retail's Bryan Roberts says H&M can't put a foot wrong at the moment. SOUNDBITE: Bryan Roberts, Retail Director, Kantar Retail, saying (English): "We're seeing some decent marketing, some very good products, some interesting collaborations with designers as well. They're just ticking so many boxes at the moment and we continue to be impressed by their track record in terms of sales growth and also their profitability." Much of H&M's fashion is made in Asia, allowing it to benefit from cheaper production costs. That's helped it grow its empire to 3,639 stores in 59 markets. And it's running those stores increasingly efficiently, according to FxPro's Simon Smith. (SOUNDBITE)(ENGLISH) FXPRO CHIEF ECONOMIST SIMON SMITH SAYING: "If you actually look at the number of stores they've been declining so what they're doing on a simple basis is gaining more sales and better margin from a smaller number of stores, and that for any business is a positive move." The news boosted H&M's share price 2.4 percent, before falling back.