Fashion chain H&M has revealed weaker-than-expected sales for the past year after it was impacted by Red Sea shipping delays and the late timing of Black Friday.

However, the Swedish retail giant said sales growth improved in December and January as it started a new financial year.

Daniel Erver, who was appointed as the Hennes & Mauritz boss last January, said he is confident the group is “on the right track”.

The company reported that sales grew by 3%, in local currency, to 62.2 billion Swedish krona (£4.5 billion) over the quarter to the end of November.

This was below the roughly 63.5 billion Swedish krona (£4.6 billion) forecast by analysts. Shares in the company dipped in early trading as a result.

H&M said it built up more stock over the period as it faced longer transport times due to continued disruption.

Net sales across the group were up 1% to 234.5 billion Swedish krona (£17.1 billion) for the year to November.

The company said it opened 88 stores over the year.

H&M added that group sales increased by 4% over the two months to January 28 as demand accelerated.

Bosses at the business have overseen a shake-up in recent months which included the closure of stores under its Monki brand as it sought to streamline its operations.

Mr Erver added: “During 2024, we made significant improvements.

“Our priority was the H&M product offering, with an initial focus on womenswear, where we increased our trend responsiveness and overall assortment relevance.

“In the fourth quarter, full price selling of womenswear increased in all channels.

“We accelerated the pace of improvements to our supply chain, increasing flexibility and product availability across channels.”

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