H&M’s Q4 sales fall slightly more than expected

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.