H&M has revealed it saw an 11% decrease in sales in Australia in Q2 2018 compared to the same quarter last year.
In its Q2 quarterly report, the group reported that it had seen a drop from kr700 million in sales during Q2 2017 to kr622 million in sales for Q2 2018 across the country.
However, the company announced that it had opened 3 new stores in Australia while also not closing any during the tough quarter.
The poor results in Australia came at a time when the company saw its growth stagnate globally with the company announcing a 2% increase in sales across the globe compared to last year's Q2 results.
H&M CEO Karl-Johan Persson said that the company was focused on a transitional period which would see the company improve supply chains and logistics.
“We are in a transitional period that is both exciting and challenging. Challenging because it is complex, extensive and the pace of change is fast. Exciting because we can see positive trends and big potential in connection with our improvement work and investments.
“As we signalled previously, it was going to be a tough first half-year. We went into the second quarter carrying too much stock and we still had some imbalances in the H&M assortment – something that we are gradually correcting.
“Overall, however, total sales for the quarter were not satisfactory, which meant that inventory levels were still too high at the end of the period.”