H&M has reported sluggish sales as efforts to tighten stock levels left some shops unable to meet demand.

The Swedish fashion firm nonetheless said its improvements would boost profitability in the long run.

It reported sales of £8.1billion for the first half between December and May, 3 per cent lower year-on-year. 

Sales in Western Europe, where H&M makes the most money, were down by 5 per cent.

Chief executive Daniel Erver said it had worked on the productivity of its stock inventory, adding: ‘The improvements have strengthened profitability, simplified operations and increased our ability to act closer to the customer.’