European woes are blamed for H&M slide

H&M may be the global No 2 but its figures this week were described as 'awful'

Clothing giant H&M yesterday posted a 4 per cent slide in sales amid weak European consumer sentiment.

The June figure, relating to sales in local currencies at established stores, was broadly in line with analysts' forecasts and was also impacted by a strong year-ago comparison. Retail experts expect more gloom in the third quarter as major markdowns by competitors put H&M's sales expectations to the test.

The world number two clothes retailer, after Zara-owner Inditex, said total June sales, including stores opened in the past year, were up 5 per cent in local currencies, also meeting expectations.

However, analysts at Singer Capital markets called the figures awful. "We think it is fair to assume that the UK won't have been good," they added.