Squeeze spreads to H&M

The Swedish chain, which has 2,297 stores worldwide including more than 180 in the UK, posted a 4 per cent decline in like-for-like sales in June.

But the company, which operates in 39 countries, has opened nearly 300 stores in the last year and saw total sales rise by 5 per cent compared to June last year.

H&M recently warned rising raw material costs were hitting profits. The world’s number two fashion retailer said its gross margin had dropped to 59.9 per cent in six months to May 31, from 64 per cent a year earlier.