The H&M Group has recorded “flattish” net sales as it continues to lag behind its closest rival, Zara owner Inditex.
H&M, which also owns brands such as Cos and Arket, saw an year-on-year increase in net sales of 6% to 60.8bn Swedish Krona (£44bn) between 1 June and 31 August 2023.
Excluding Russia, Belarus, and Ukraine, the increase was 8%.
H&M said work towards the its goal of reaching a 10% operating margin in 2024 is “going
in the right direction”, whilst profitability and inventory levels had been prioritised in the quarter.
The Swedish retail group’s fortune’s pale in contrast to Inditex, which earlier this week revealed results which extended its lead as the world’s biggest fashion company.
The Spanish company, which owns brands such as Zara, Bershka, and Pull & Bear, recorded a 40% increase in profit during the six months to July 2023 compared to the same period the year before.
Inditex said it was able to benefit from being able to deliver fashionable trends quickly from nearby suppliers, enabling it to widen its gap to H&M.