LONDON — In January, Hennes & Mauritz AB’s total sales, including VAT in local currencies, increased 5 percent year-on-year. Revenues at constant group structure declined 4 percent.
H&M’s stores numbered 2,808 on Jan. 31, compared with 2,488 on Jan. 31, 2012.
Bernstein Research downgraded H&M to underperform on Thursday.

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“We examine the rising competitive threat from retailers like Primark and Forever 21, with an in-depth look at 10 of H&M’s largest markets, and conclude that H&M is likely to continue reducing prices, pressuring margins,” an analyst at the firm said, in a statement. Bernstein gave H&M a target price of 195 Swedish Krona, $30.88 at current exchange, based on expectations that margins will “continue to deteriorate over the medium term.”
On March 14, H&M will relaunch its Oxford Circus store in London with a four-day celebration of music and fashion events, discounts and live performances by DJs and surprise guests.