H&M sees 6% drop in July sales

H&M posted a 6% fall in like-for- like sales in July as the world’s second-largest clothes retailer suffered from weak consumer sentiment in Europe where it makes most of its sales.

The July figure was the biggest monthly sales drop for the Swedish budget fashion chain since April 2010, when sales in local currencies at established stores were also down 6%.

Société Générale analyst Anne Critchlow said the data was disappointing. “Comparatives are tough while economic conditions are tough across Europe — and will perhaps get worse.”