H&M, the Swedish clothing chain, has warned investors that sales from its stores will continue to fall this year as it struggles to cope with increasing global competition.
The retailer, which is the world’s second largest fashion chain after Inditex, the owner of Zara, said that its like-for-like sales would “remain negative” this year, blaming the downturn on a “shift in the industry”.
Speaking at its first ever capital markets day, the retailer said that although store sales would be sluggish, its internet sales should rise by 25%. This should lead to “somewhat better” earnings this year.
H&M operates more than 4,700 stores in 69 markets and employs more than 171,000 people.
