Shares in fashion giant H&M plummet after wet weather causes ‘catastrophe’ for sales decline

Sales of fashion giant H&M have been washed away by the wet weather.

In an update that analysts called a “catastrophe,” the company said revenue in June is expected to be 6 percent lower than the same month last year.

The company said ‘unsettled weather’ in many of the biggest markets was preventing people from heading to the High Street.

But the Swedish company said business picked up as the sun came out again towards the end of the month.

However, bosses warn that consumer confidence remains fragile, which is negatively affecting spending.

“The situation in the world around us remains uncertain and households still face high living costs,” said CEO Daniel Erver, who took up the position in January.

Shares fell as much as 13 percent in Stockholm. AJ Bell investment director Russ Mold said: ‘June was a catastrophe.

Fashion retail is a highly competitive market and although H&M is one of the best-known brands on the high street and online, it can never take its foot off the pedal and rely on passing trade.’

It faces fierce competition from budget brand Shein and its longtime rival Inditex, owner of Zara.

Turnover was 3 percent higher in March to May than in the same period a year earlier.