H&M sales fail to hit forecast as retailer struggles to compete with Zara

Third-quarter net sales at the Swedish group were up 3% from a year earlier at €5.4bn, short of the 5% which analysts polled by Refinitiv had forecast for the June-August quarter

H&M's performance substantially underperformed market leader Inditex, the owner of Zara. Picture: Victor J. Blue/Bloomberg.

H&M reported on Thursday lower-than-expected quarterly sales as shoppers tighten their belts with energy and food bills soaring and the world's second-biggest fashion retailer struggles to compete with rival Zara.

Third-quarter net sales at the Swedish group were up 3% from a year earlier at 57.5bn crowns (€5.4bn), short of the 5% which analysts polled by Refinitiv had forecast for the June-August quarter.