STOCKHOLM—H&M, the world’s second-biggest fashion retailer, reported on Wednesday a smaller-than-expected increase in sales in the latest sign it is struggling to compete with Zara-owner Inditex.
Shares in H&M were down 6 percent in early trade, underperforming the wider Swedish market.
The Swedish group said sales measured in local currencies for the period, its fiscal first quarter, rose 3 percent from a year earlier.
Jefferies said local-currency sales, the figures most watched by markets, were significantly lighter than consensus estimates and implied that sales in reality fell 3 percent in February.
The broker called the results “worse than feared” and that it expected a loss in earnings before interest and taxes (EBIT) when the group reports its full first quarter results on March 31….