H&M November Sales Up 10%, Tops Estimates

STOCKHOLM, Sweden — Hennes & Mauritz AB, Europe's second-biggest clothing retailer, increased November sales faster than analysts predicted, contributing to a 17 percent jump in fourth-quarter revenue.

Sales last month in local currencies, and including value- added tax, increased 10 percent from a year earlier, Stockholm- based H&M said in a statement today. That topped the 8.4 percent gain anticipated in a survey by SME Direkt.

H&M is investing in new formats and expanding its online business as the retailer faces competition from low-cost clothing retailers such as Primark. The Swedish company last month sold a guest collection by designer Alexander Wang, creative director of Kering SA's Balenciaga-brand.

Sales excluding value-added tax in the fourth quarter ended Nov. 30 rose to 42.6 billion kronor ($5.64 billion) from 36.5 billion a year earlier. The average of 17 analyst estimates compiled by Bloomberg amounted to 42.2 billion kronor.

By Katarina Gustafsson; editors: Celeste Perri, Tom Lavell, Paul Jarvis.