High-street fashion chain Hennes & Mauritz says its sales have increased at the fastest rate for two years, spurred by high demand for designer Karl Lagerfeld's collection.

H&M, which is based in Stockholm, Sweden, reported international sales growth of 24 per cent year-on-year in November, which was double the increase for the year so far and the fastest growth rate since October 2002.

However, despite the popularity of Lagerfeld's collection - which sold out on its launch day at some branches - the designer says he won't work with the chain again after it extended the range to include larger sizes.

The 13 per cent increase in retail space within the group this year is also said to have played a big part in the sales growth.