H&M. Photo: VCG

H&M's sales in the Chinese market have suffered as a result of its rejection of Xinjiang-produced cotton, according to the Swedish fashion retailer's latest quarterly disclosure.

Its sales in China, one of its top 10 markets, plummeted 28 percent in Swedish krona terms in the second quarter from the year before, per the quarterly results.

The number of stores in the Chinese market totaled 489 as of May 31. Over the second quarter, its net new store numbers shrank by 13 in the market. 

The disappointing readings are seen as undercutting optimism in the outlook for the fashion giant despite a surge of 75 percent year-on-year in its global net sales in local currencies in the second quarter. 

H&M's ill-grounded refusal to use Xinjiang cotton over human rights abuses earlier this year has subjected the brand to a widespread consumer boycott, which has seen Chinese consumers strike back at a handful of foreign clothing brands banning Xinjiang-sourced cotton. 

Sportswear giants Nike and Adidas were also among the brands that have quickly gone from popular to undesirable. 

In a fresh sign of efforts to re-appeal to Chinese consumers, Nike chief executive John Donahoe recently made a robust defence of the US firm's China businesses, saying that "Nike is a brand that is of China and for China," according to media reports.

Global Times