H&M shares plunge after ‘worst sales on record’

H&M shares plummeted after the Swedish apparel chain lost more ground to Inditex’s Zara, amid a crisis in brick-and-mortar stores that threatens to undermine retailers with underdeveloped online businesses.

H&M reported the biggest drop in quarterly sales in at least a decade as fewer customers visited its flagship brand’s locations, leading the company to pare expansion plans and consider closures. The stock fell up to16%, the steepest intraday decline since March 2001.

A crisis that has shuttered shopping malls in the US is spreading to other parts of the world, hitting H&M’s earnings and forcing the retailer to cut prices to clear out inventory.