Fashion retailer H&M said on Friday it would be closing high street stores and making fewer store openings as it responded to growth in its online business.
After reporting sales in its fourth quarter would be "significantly below" its expectations, the company said it had been a "weak" period for the H&M brand's physical stores.
These were "negatively impacted by a continued challenging market situation with reduced footfall to stores due to the ongoing shift in the industry" towards digital sales.
The Swedish company said that full-year group sales including VAT increased 4% to SKr2.31bn (£204m).
H&M's chief executive Karl-Johan Persson said in its trading update: "In order to respond even quicker to customers’ fast-changing behaviour the company’s ongoing transformation journey is being accelerated.
"Among other things, this includes continued integration of the physical and digital stores, and intensifying the optimisation of the H&M brand’s store portfolio – leading to more store closures and fewer openings."
Shares of H&M Hennes & Mauritz fell sharply in early trade on the Stockholm bourse, losing 10.78% to SKr178.70.