STOCKHOLM: Hennes & Mauritz (H&M) AB reported a brisk slowdown in sales growth, becoming one of the first retailers to signal how has the war in Ukraine is weighing on consumption.

       Sales rose 6% in local currencies in March compared with 23% growth in the three months through February, H&M said yesterday.

       The war and a resurgence of Covid in China are weighing on the prospects for retail after a recent rebound. H&M has paused sales in Russia, its sixth-biggest market, accounting for about 4% of total revenue.

       H&M had 227 stores closed as of Wednesday, most of them in Russia, Belarus and Ukraine. Excluding those three countries, revenue rose 11% in March.

       Pre-tax profit reached 282 million kronor (US$30mil or RM126.12mil) in the three months through February, far short of the average analyst estimate.

       The first quarter typically contributes less to profit than the rest of the year as it includes post-Christmas clearance sales.

       H&M had a loss in the year-earlier period due to pandemic-related store closures and discounts to clear out inventory after Christmas.

       H&M’s inventory began to pile up in 2016, and the retailer is still struggling to bring down the level. — Bloomberg