Swedish fashion retailer H&M disappointed the market with its fiscal third quarter sales figures, as it warned of continuing tough conditions in the rag trade.

The group posted sales growth of 0.9% to 3.62 billion Swedish kronas (SEK) for its fiscal third quarter, falling short of the SEK4.05bn expected by the market.

"Conditions in the fashion retail industry continued to be challenging in many markets - both as regards the weather and the macro-economic climate," explained Chief Executive Officer Kar-Johan Persson.

The group's gross margin fell by four decimal points to 58.2% and also fell short of the 59% expected by the market.

H&M has decided to postpone the opening of its online shops in the United States until next summer and plans to open 300 new stores by November.

From September 1st to 25th, sales rose 14% compared to the year-ago period.

SC

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