H&M sits on £3 billion mountain of unsold clothes

Fast-fashion giant H&M was in danger of falling apart at the seams on Tuesday after it admitted its profits had plunged 60% and it was sitting on a $4.3 billion (£3 billion) pile of unsold clothes.

Chief executive Karl-Johan Persson admitted the start of the year had been “tough” as the Swedish company, which also owns upmarket brands & Other Stories and COS, saw pre-tax profits down to £108 million in the three months to February 28.

It warned the high stockpiles will lead to more discounts in the second half, potentially denting its margins.

The retailer, which is beefing up its website to sell more goods online, has been losing ground to Zara owner Inditex as the battle to attract more shoppers to bricks-and-mortar stores intensifies.