H&M sales fall back after warm weather dented September shopping

H&M Group has reported stagnant sales in recent months as the international fashion retailer faces a slowdown in consumer spending and the knock-on impact of closing stores in Russia.

Between September and November, net sales fell by 4% in local currencies compared with the same period last year, totalling 62.6 billion Swedish krona (£4.8 billion).

The Swedish group, which also owns brands Weekday and Monki, and higher-end chains & Other Stories and Arket, is the world’s second largest fashion retailer with more than 4,000 stores, behind Zara owner Inditex.

However, the quarterly sales update showed an improvement from the 10% decline that the firm warned it would face in September.

H&M said it was expecting sales to tumble as unusually hot weather across many European markets dented demand for autumn ranges.

Analysts at Jefferies suggested the improved performance reflects a return to colder weather in October and November, after the unseasonably warm September.

But the retailer has fallen further behind rival Inditex which announced strong sales ahead of Christmas earlier this week.

The Spanish owner of Zara, Bershka and Pull & Bear said sales jumped by 14% over the six weeks to December 11, adding that its autumn/winter collection was “well received” by shoppers.

Over the three months to October, sales grew by about 7% to 8.8 billion euros (£7.6 billion).

H&M has seen its trading take a hit from discontinuing operations in Russia and Belarus, over the war in Ukraine.

The group, which was founded in Sweden in 1947 and listed in Stockholm, will publish a full-year report at the end of January.