Sales fell 4% in the three months through November at constant currencies, the company said Friday, in line with analysts’ expectations. Excluding Russia and Belarus, the decline was 1%.

The slowdown increases pressure on H&M to increase discounts to clear inventory, as the company has suffered from a buildup in unsold garments for more than seven years.

The retailer warned in September that revenue was dropping that month due to an abnormally warm start to autumn in Europe.

Last year, sales were boosted by a temporary reopening in Russia before the retailer permanently discontinued operations in the country. H&M gradually started reopening in Ukraine in November after having closed operations in February 2022 due to the war.

On Wednesday, Zara owner Inditex SA reported 7% quarterly revenue growth, the slowest rate in almost three years.

H&M has been vulnerable to competition from the likes of Inditex and upstart Shein, which has been grabbing market share with cut-price offerings.

Still, H&M’s stock has climbed 57% this year as the company tries to improve profitability and reduce the inventory backlog.