video Finance Videos
Inditex and H&M feel the chill
Wednesday, June 12, 2013 - 02:17
June 12 - Cold weather in Europe is proving a problem for the world's largest fashion retailers. Zara owner Inditex and Hennes and Mauritz have both posted disappointing sales numbers. In contrast, as Joanna Partridge reports, business at British online fashion retailer ASOS is booming.
▲ Hide Transcript
▶ View Transcript
It's been a cold spring and summer in Europe and the world's biggest fashion retailers - Inditex and H&M - are feeling the effects. Spain's Inditex, which owns the Zara chain, has posted its weakest quarterly growth in net profit in four years. The group saw sales rise just over 5% in the first quarter. European consumers are still strapped for cash - and the weather has done little to help sales of summer outfits. It's a similar story at Sweden's H&M. It hasn't yet posted its full quarterly results - but its net sales just missed analysts' expectations. Ana Santi is deputy editor of fashion and retail magazine Drapers. She says Inditex investors shouldn't be too worried by the results. SOUNDBITE: Ana Santi, Deputy Editor, Drapers, saying (English): "With the weather having been as it has been, you jus t can't expect them not to suffer. So I don't think it's a huge worry for them, it will be interesting to see what happens in Q2. But I wouldn't be too worried about it now, because they're certainly not alone, and the fact is, they are g rowing, it's just that the growth has slowed." The world's biggest clothing retailer has expanded into new markets to reduce exposure to hard-up consumers at home And it's outpaced its rivals in recent years. But it looks like sales growth could now be slowing. 80% of H&M's sales come from Europe - so it's been hit harder than others by the region's downturn. Despite the bleak economic background, online retailer ASOS is shining. Its stock jumped by as much as 3.5% after it posted a 45% rise in third quarter sales. ASOS enjoyed strong growth in Britain - and is expanding into Russia and China. It's recently signed a deal with budget fashion chain Primark to sell cheap women's and menswear on the website. SOUNDBITE: Ana Santi, Deputy Editor, Drapers, saying (English): "Zara will not be complacent, they'll be looking at ASOS, they'll certainly look at ASOS as a competitor. You have slightly older customers shopping at Zara because the price points are a little bit higher, so I do think ASOS's success will have more of an impact on H&M." There's still time for the weather to improve this summer. But H&M, Inditex and other retailers may soon have a dilemma - hold their nerve and wait for the sun or put summery clothes on sale early.
Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code
Inditex and H&M feel the chill
Wednesday, June 12, 2013 - 02:17
Top News »
1:58am BST - (1:55)
12:17am BST - (1:02)
Wed, 18 Apr, 2018 - (1:52)
Wed, 18 Apr, 2018 - (0:58)
Wed, 18 Apr, 2018 - (0:35)
Wed, 18 Apr, 2018 - (1:37)
Wed, 18 Apr, 2018 - (0:45)
Wed, 18 Apr, 2018 - (1:56)
Wed, 18 Apr, 2018 - (1:22)
Wed, 18 Apr, 2018 - (1:26)
Wed, 18 Apr, 2018 - (2:06)
Tue, 17 Apr, 2018 - (1:35)
Editors' Picks »
10:24am BST - (1:45)
Tue, 17 Apr, 2018 - (2:44)
Tue, 17 Apr, 2018 - (2:15)
Mon, 16 Apr, 2018 - (1:59)
Sat, 14 Apr, 2018 - (1:09)
Sat, 14 Apr, 2018 - (2:15)
Sat, 14 Apr, 2018 - (1:40)
Thu, 12 Apr, 2018 - (2:11)
Wed, 11 Apr, 2018 - (2:09)
Tue, 10 Apr, 2018 - (1:37)
Most Popular »
Thu, 23 Nov, 2017 - (1:16)
Business »
2:50am BST - (3:34)
Wed, 18 Apr, 2018 - (1:32)
Wed, 18 Apr, 2018 - (1:05)
Wed, 18 Apr, 2018 - (4:21)
Wed, 18 Apr, 2018 - (0:49)
Wed, 18 Apr, 2018 - (1:51)
Wed, 18 Apr, 2018 - (1:24)
Wed, 18 Apr, 2018 - (1:15)
Wed, 18 Apr, 2018 - (1:44)
Wed, 18 Apr, 2018 - (1:25)
Wed, 18 Apr, 2018 - (1:27)
Wed, 18 Apr, 2018 - (1:21)
Featured Videos
Tarantula burgers on the menu
For adventurous diners, tarantula topped burgers are available at a Durham, North Carolina restaurant as part of its ‘exotic meat’ month
Runners brave the cold for North Pole Marathon
Runners brave freezing conditions at top of the world in North Pole Marathon
UK firm turns discarded gum into shoes, coffee cups and combs
Chewing gum is a blight on city streets and takes a heavy toll on the environment, say its critics. But one woman in Britain is performing modern-day alchemy on it
After oil, solar? Saudi Arabia plans ahead
Researchers in a lab outside Riyadh are leading the kingdoms ambitious new plans to be a world leader in solar energy
A Belgian supermarket with a fresh take on fair trade
A new non-profit supermarket in Brussels is seeking to offer a fairer deal to farmers
Technology »
Wed, 18 Apr, 2018 - (1:03)
Wed, 18 Apr, 2018 - (1:01)
Wed, 18 Apr, 2018 - (1:35)
Tue, 17 Apr, 2018 - (1:25)
Tue, 17 Apr, 2018 - (1:07)
Mon, 16 Apr, 2018 - (1:54)
Mon, 16 Apr, 2018 - (1:48)
Mon, 16 Apr, 2018 - (0:50)
Sun, 15 Apr, 2018 - (1:55)
Entertainment »
10:55am BST - (1:36)
Wed, 18 Apr, 2018 - (1:04)
Wed, 18 Apr, 2018 - (1:54)
Tue, 17 Apr, 2018 - (1:34)
Tue, 17 Apr, 2018 - (1:17)
Tue, 17 Apr, 2018 - (1:48)
Tue, 17 Apr, 2018 - (1:05)
Mon, 16 Apr, 2018 - (1:47)
Mon, 16 Apr, 2018 - (1:33)
Mon, 16 Apr, 2018 - (0:51)
Mon, 16 Apr, 2018 - (2:15)
Mon, 16 Apr, 2018 - (0:49)
Sports And Leisure »
10:22am BST - (0:48)
10:22am BST - (1:19)
Wed, 18 Apr, 2018 - (3:00)
Wed, 18 Apr, 2018 - (1:30)
Tue, 17 Apr, 2018 - (1:23)
Mon, 16 Apr, 2018 - (2:02)
Mon, 16 Apr, 2018 - (2:55)
Fri, 13 Apr, 2018 - (0:52)
Fri, 13 Apr, 2018 - (1:25)
Fri, 13 Apr, 2018 - (1:22)
Oddly Enough »
Tue, 17 Apr, 2018 - (1:33)
Tue, 17 Apr, 2018 - (1:27)
Thu, 12 Apr, 2018 - (0:49)
Wed, 11 Apr, 2018 - (3:54)
Tue, 10 Apr, 2018 - (0:56)
Tue, 10 Apr, 2018 - (0:45)
Thu, 05 Apr, 2018 - (1:40)
Tue, 03 Apr, 2018 - (0:37)
Thu, 29 Mar, 2018 - (0:52)
Thu, 29 Mar, 2018 - (1:39)
Dateline Asia »
Tue, 05 Dec, 2017 - (2:06)
Tue, 05 Dec, 2017 - (2:11)
Fri, 01 Dec, 2017 - (2:04)
Thu, 30 Nov, 2017 - (2:10)
Thu, 30 Nov, 2017 - (2:14)
Wed, 29 Nov, 2017 - (2:11)
Tue, 28 Nov, 2017 - (1:55)
Tue, 28 Nov, 2017 - (2:21)
Mon, 27 Nov, 2017 - (2:25)
Fri, 24 Nov, 2017 - (2:16)
Fri, 24 Nov, 2017 - (2:14)
Thu, 23 Nov, 2017 - (2:18)