Budget fashion chain H&M has posted a 5% drop in June same-store sales, showing that even its shoppers seeking its low-price catwalk looks are paring back in the recession.

June sales in local currencies were up by 4% year-on-year, helped by new store openings taking its total to 1,827 stores.

H&M, the world's third largest retailer by revenue, last month posted a 6.3% rise in second quarter profit to SEK4.19bn (US$525.4m) as sales jumped 23% to SEK26.54bn. However, same-store sales fell by 2% during the period.