H&M Has Lagged Behind Zara Owner Inditex In Online Shopping. Both Stocks Fell.
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    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,471,287 (-0.47%)       Melbourne $953,578 (0%)       Brisbane $813,837 (+0.79%)       Adelaide $762,215 (+0.12%)       Perth $660,264 (+0.59%)       Hobart $715,003 (-0.87%)       Darwin $649,416 (+2.32%)       Canberra $938,596 (-3.12%)       National $942,992 (-0.51%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $699,562 (+0.47%)       Melbourne $469,057 (-0.10%)       Brisbane $443,473 (-0.97%)       Adelaide $377,120 (+2.85%)       Perth $368,266 (+0.42%)       Hobart $549,709 (-0.61%)       Darwin $339,112 (+0.57%)       Canberra $492,401 (+2.61%)       National $493,098 (+0.45%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 8,253 (+355)       Melbourne 11,270 (+481)       Brisbane 8,990 (+21)       Adelaide 2,573 (+50)       Perth 8,017 (+44)       Hobart 886 (-7)       Darwin 252 (+5)       Canberra 876 (+38)       National 41,117 (+987)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 7,339 (+207)       Melbourne 6,852 (+127)       Brisbane 1,928 (+30)       Adelaide 437 (-33)       Perth 2,214 (+33)       Hobart 140 (+3)       Darwin 334 (-5)       Canberra 435 (+1)       National 19,679 (+363)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $680 ($0)       Melbourne $500 ($0)       Brisbane $565 ($0)       Adelaide $530 (+$5)       Perth $570 (+$10)       Hobart $560 ($0)       Darwin $678 (-$3)       Canberra $700 ($0)       National $606 (+$1)                    UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $620 (+$3)       Melbourne $470 (+$10)       Brisbane $510 (+$10)       Adelaide $430 ($0)       Perth $500 (+$10)       Hobart $498 (+$13)       Darwin $560 (+$10)       Canberra $550 ($0)       National $523 (+$7)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 6,511 (-206)       Melbourne 6,333 (-297)       Brisbane 4,007 (-126)       Adelaide 1,167 (-60)       Perth 1,654 (-51)       Hobart 274 (+2)       Darwin 144 (+2)       Canberra 710 (-5)       National 20,800 (-741)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 7,667 (-348)       Melbourne 5,301 (-243)       Brisbane 1,588 (-99)       Adelaide 402 (-13)       Perth 705 (-26)       Hobart 112 (+3)       Darwin 234 (-4)       Canberra 569 (-24)       National 16,578 (-754)                HOUSE ANNUAL GROSS YIELDS AND TREND       Sydney 2.40% (↑)      Melbourne 2.73% (↑)      Brisbane 3.61% (↑)      Adelaide 3.62% (↑)      Perth 4.49% (↑)      Hobart 4.07% (↑)        Darwin 5.42% (↓)     Canberra 3.88% (↑)      National 3.34% (↑)             UNIT ANNUAL GROSS YIELDS AND TREND       Sydney 4.61% (↑)      Melbourne 5.21% (↑)      Brisbane 5.98% (↑)        Adelaide 5.93% (↓)       Perth 7.06% (↓)     Hobart 4.71% (↑)      Darwin 8.59% (↑)        Canberra 5.81% (↓)     National 5.52% (↑)             HOUSE RENTAL VACANCY RATES AND TREND       Sydney 1.6% (↑)      Melbourne 1.8% (↑)      Brisbane 0.5% (↑)      Adelaide 0.5% (↑)      Perth 1.0% (↑)      Hobart 0.9% (↑)      Darwin 1.1% (↑)      Canberra 0.5% (↑)      National 1.2% (↑)             UNIT RENTAL VACANCY RATES AND TREND       Sydney 2.3% (↑)      Melbourne 2.8% (↑)      Brisbane 1.2% (↑)      Adelaide 0.7% (↑)      Perth 1.3% (↑)      Hobart 1.4% (↑)      Darwin 1.3% (↑)      Canberra 1.3% (↑)      National 2.1% (↑)             AVERAGE DAYS TO SELL HOUSES AND TREND       Sydney 42.5 (↑)      Melbourne 44.7 (↑)      Brisbane 46.7 (↑)      Adelaide 39.8 (↑)      Perth 45.7 (↑)      Hobart 43.3 (↑)        Darwin 40.7 (↓)     Canberra 47.9 (↑)      National 43.9 (↑)             AVERAGE DAYS TO SELL UNITS AND TREND       Sydney 43.8 (↑)      Melbourne 45.0 (↑)      Brisbane 45.7 (↑)      Adelaide 39.7 (↑)      Perth 47.4 (↑)      Hobart 51.1 (↑)      Darwin 61.3 (↑)      Canberra 44.6 (↑)      National 47.3 (↑)            
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H&M Has Lagged Behind Zara Owner Inditex In Online Shopping. Both Stocks Fell.

By Jack Denton
Wed, Dec 16, 2020 12:11amGrey Clock 2 min

The Covid-19 pandemic caused sales to slump at retail giants Inditex and Hennes & Mauritz (H&M) in November, reversing glimmers of a recovery and shining a light on the very different online sales performance between the two companies.

Shares in both companies fell in European trading, with Inditex, which owns Zara, trading near 2% lower and H&M dropping more than 2% on Tuesday.

The back story. As global coronavirus infection rates slowed through the summer and government restrictions were loosened, shoppers flocked back to stores after months of retail closures. Both Spanish Inditex and Swedish H&M—the largest and second-largest fashion chains in the world, respectively—returned to profitability in the autumn after large losses.

With the Covid-19 pandemic keeping millions of shoppers housebound, Inditex has made a key investment in expanding online shopping. In June, the company announced a €2.7 billion ($4.34 billion) investment plan to improve online operations and increase store footprint, of which €1 billion was earmarked for digital investments.

H&M, still controlled by its founding Persson family, was already struggling before the pandemic hit. The company has been slower to shift to online shopping in favour of its more than 5,000 stores and the low-cost fashion strategy it helped pioneer.

What’s new. Both companies reported results on Tuesday—Inditex for the three months to the end of October, and H&M for the quarter ending Nov. 30 as well as the full year.

Store and online sales grew slowly from August to October at Inditex, with October sales at 94% of 2019 levels at constant currencies. In total, net sales of €6.1 billion in the third quarter were 14% lower than the same period in 2019. However, as coronavirus cases surged in November, 21% of stores remained closed and sales fell to 81% of 2019 levels.

At H&M, net sales for the fourth quarter were 10% lower in local currencies from the same period last year. Much of that came in the final month: sales were down by just 3% year-over-year from Sept. 1 to Oct. 21, but were 22% lower than 2019 in the period from Oct. 22 to Nov. 30.

Looking ahead. The results from the retail giants show the impact the second wave of Covid-19 has brought on sales. Fears over how much this hurts the bottom line for the full year is what may have caused both stocks to fall.

But the results also shine a light on the companies’ different online strategies—a crucial sales platform beyond the pandemic. Inditex reported that online sales grew 76% in the nine months to the end of October, while analysts expect H&M to lag far behind. The Swedish retailer didn’t post any fresh online figures on Tuesday. It had posted online sales growth of 40% in the second quarter and just 27% in the third.

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“Since October 2021, lenders have assessed new borrowers on their ability to service a mortgage under an interest rate scenario that is at least 300 basis points above their origination rate,” he said. “The latest lift in the cash rate will push these recent borrowers beyond their serviceability tests.  

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