© Reuters. FILE PHOTO: The H&M clothing store is seen in Times Square in Manhattan, New York, U.S., November 15, 2019. REUTERS/Mike Segar/File Photo
STOCKHOLM (Reuters) -Swedish fashion retailer H&M (ST:) reported on Friday a 4% drop in September-November sales measured in local currencies, larger than the 3% fall forecast by analysts.
The decline is the biggest since the third quarter of 2022 when it was also 4%.
The world’s second-biggest listed fashion retailer after Inditex (BME:), H&M has been prioritising its profit margin over sales, as it aims for an operating margin of 10% for 2024. For the first nine months of this year, its operating margin came in at 5.9%.
In Swedish crowns, net sales were roughly unchanged at 62.6 billion crowns ($6.10 billion) against a mean forecast of 63.2 billion.
Zara owner Inditex on Wednesday reported a 15% rise in local-currency sales for the nine months through October, and a 14% rise for the following six weeks. It posted a jump in 9-month profit and raised its margin outlook.
H&M is due to publish its full-year earnings report on Jan. 31.
