H&M shares plunge after moist climate sparks a gross sales stoop ‘disaster’

Fashion giant H&M’s sales have been washed away by the wet weather. 

In an update branded a ‘catastrophe’ by analysts, the company said sales in June were set to be 6 per cent lower than the same month last year. 

It said ‘unstable weather’ in many of its largest markets deterred shoppers from the High Street. 

Slump: H&M said sales in June were set to be 6% lower than the same month last year

But the Swedish firm said trading picked up as the sun emerged towards the end of the month. 

Even so, bosses have warned that consumer confidence remains fragile, hitting spending. 

‘The situation in the world around us remains uncertain and households continue to have high living costs,’ said chief executive Daniel Erver, who took up the job in January. 

Shares plunged by as much as 13 per cent in Stockholm. AJ Bell investment director Russ Mould said: ‘June was a catastrophe. 

Fashion retail is a highly competitive market and while H&M is one of the best-known brands on the high street and online, it can never take the foot off the pedal and rely on passing trade.’

It faces hot competition from budget brand Shein and its long-standing rival Inditex, which owns Zara. 

Sales in March to May were 3 per cent higher than in the same period a year earlier.