Sales of Hennes & Mauritz AB did not change in the second quarter as Swedish clothing retailer is trying to reduce record high level of inventory, Bloomberg reports.

H&M is trying to keep up with its rivals, however, customers turned away from the retailer recently. It also showed record high level of stocks exceeding $4 billion at the end of first quarter.

Company's shares went down by 2,7% on Thursday.

Alhtough H&M continues opening new store, it now slows down the expansion. As of end of May, there were 4801 stores around the world, which is 1% higher than at the end of last fiscal year. H&M's goal for 2018 is to open 390 new stors and close 170 old ones. The company is also opening new chains: discount stores Afound and Arket stores that will sell clothes and houseware.

H&M report was issued three days after Intitex SA, owner of ZARA brand, published data on first quarter sales that were lower than estimates. European clothing retailers met with growing competition from online stores, where customers now can get clothes by mail and then easily return them if it does not fit.