HM sales lag rival Inditex
SeptNov local currency sales down 4 vs forecast 3 fall
Retailer trying to increase margin to 10 next year

STOCKHOLM, Dec 15 Reuters HM39;s localcurrency sales fell in the fourth quarter as the Swedish fashion retailer loses ground against Zara owner Inditex, which reported a sales boost earlier this week.

HM39;s sales fell 4, against analysts39; expectations for a 3 decline. It was the biggest drop since the third quarter of last year.

Inditex on Wednesday reported a 15 rise in localcurrency sales for the nine months through October, and a 14 rise for the following six weeks.

However, HM39;s figure was an improvement on the 10 fall it warned of for September, when unusually warm weather hurt sales of autumnwinter collections across the sector.

The 4 quarterly decline likely reflects a return to colder weather in October and November, Jefferies analysts said. Shares in HM were little changed in early trading.

The world39;s secondbiggest listed fashion retailer after Inditex, HM has been prioritising its profit margin over sales, aiming to sell more expensive products and do less discounting, as it strives to reach an operating margin of 10 in 2024.

HM shares have outperformed Inditex this year, though, up around 56 as investors bet on the company39;s ability to bounce back after inflation dented its profitability.

HM was slower to raise its prices than Zara, as its customer base is, on average, more pricesensitive.

But this year,…