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ashion chain H&M has revealed its gross sales flatlined within the newest quarter after its greatest rival Zara proprietor Inditex cheered a stronger efficiency.
The Swedish retail big mentioned its internet gross sales, in native currencies, have been flattish over June to September, in comparison with the identical interval final yr.
The weaker-than-expected quarterly replace means that the chain has struggled to carry gross sales in current months, as Europe has been swept with extra risky climate circumstances.
Its shares, listed in Stockholm, have been down by almost 5% on Friday morning.
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But H&M mentioned that its internet gross sales in Swedish krona elevated by 6% to 60.9 billion Swedish krona (£4.4 billion) year-on-year.
Excluding shops in Russia, Belarus and Ukraine, which have been impacted by Russia’s battle in Ukraine, gross sales rose by 8% in Swedish krona, it mentioned.
“Profitability and inventory levels have been prioritised in the latest quarter,” the agency mentioned, suggesting its broader monetary efficiency had been prioritised over gross sales throughout the newest interval.
The replace to traders comes days after the group’s greatest rival Inditex, which owns the Zara, Pull & Bear and Bershka manufacturers, posted an enormous leap in its income and and gross sales.
The world’s largest style enterprise noticed gross sales develop by 13.5% over the newest half-year to 16.9 billion euros (£14.6 billion) with development each in shops and on-line.
It got here because the retailer slowed down value will increase to prospects after efforts to cut back price inflation.
H&M’s replace to traders comes forward of a nine-month monetary report set to be launched later this month.
