STORY: H&M is falling behind its big rival Zara.
On Thursday (September 15) the Swedish firm reported lower-than-expected quarterly sales.
They rose 3% to $5.4 billion - less than the 5% gain analysts expected.
H&M suffered as soaring inflation saw shoppers tighten their belts.
Analysts say the low-cost end of the clothing market is proving tough right now.
Even so, H&M’s numbers compared badly with arch-rival Zara, owned by Spain’s Inditex.
A day earlier it posted a big jump in sales.
It’s been increasing prices to offset surging costs.
But retail experts say that may be hard to sustain as the cost-of-living crisis deepens.
H&M shares were already down 36% this year.
On Thursday they dropped another 1.5% or so in early deals.