Fashion retailer Hennes & Mauritz has today reported its weakest monthly sales growth in more than two years, citing unseasonably warm weather in many of its large markets in Europe.
The world's second-biggest fashion retailer after Zara owner Inditex posted a 1% rise in local currencies from a year earlier, falling short of the 6% rise expected by analysts polled by Reuters.
It was H&M's weakest reading since March 2013 when sales shrank 4%.
H&M had recorded double-digit growth in the previous 10 months.
Industry-wide clothing sales in Germany, H&M's single-biggest market, sank 16% in August, according to industry data.
Analysts said that weather was to blame for the fall, with recent figures showing that the German, Swedish and UK clothing market were weak in August.
Spain's Inditex, which is less exposed to northern and western Europe than H&M, is due to report half-year results tomorrow. Analysts polled by Reuters expect on average a 25% rise in net profit.
H&M said third-quarter group sales for June-August rose to 46 billion crowns ($5.57 billion) from 38.8 billion, in line with the 45.8 billion forecast by analysts.
H&M, which does most of its business in Europe, is due to publish full third-quarter earnings on September 24.
