The worlds second largest fashion retailer said group sales grew 4% year-on-year in May

The world's second largest fashion retailer said group sales grew 4% year-on-year in May

Swedish fashion giant Hennes & Mauritz (H&M) reported slower sales growth than expected in May as it faced tough market conditions in several countries in the first half of the month.

In a trading update today (15 June), the world's second largest fashion retailer said group sales grew 4% year-on-year, in local currencies, missing analyst forecasts of 6% growth. Converted into SEK, sales increased by 8%. This compares to April sales growth of 7%. 

"In the first half of the month sales were affected by tough market conditions in several countries," the retailer explained. "Sales improved considerably in the second half of the month."

H&M's share price was down 4% this-morning as a result. In its second-quarter, for which May is the final month, sales were up 5% in local currencies. Converted into SEK, sales grew 10% to reach SEK59.54bn (US$6.84bn).

The retailer grew its store count in May to 4,498 from 4,077 in the year ago period. The company is expected to release percentage sales development for the month of June on 17 July.