H&M sales flatlined over the summer as it lost ground to Zara owner Inditex.
The Swedish fashion chain said sales in June, July and August were ‘flattish’ year on year.
Total sales hit 34.4billion.
Analysts said H&M is being squeezed on both sides – by Zara, which is attracting more aspirational shoppers, and by Primark which offers a cheaper alternative.
And while H&M is struggling, arch-rival Inditex and Primark have both posted solid sales growth this week.
Squeezed: H&M sales flatlined over the summer as it lost ground to Zara owner Inditex
‘This is very weak compared to Inditex’s accelerating second quarter,’ said William Woods, an analyst at broker Bernstein.
Inditex, which also owns the Massimo Dutti, Pull & Bear and Bershka brands as well as Zara, saw sales rise 13.5 per cent in the first half of the year to £14.6billion.
The figures were a boost for Inditex chairman Marta Ortega Perez, who last year took the reins at the firm her father founded in 1975.
Similarly, Primark owner Associated British Foods this week revealed sales at the fashion chain this year are on course to be 15 per cent higher than last year.
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