H&M, the low-cost Swedish fashion retailer, has reported a resilient first-quarter performance in spite of the global economic crisis as sales rose 18 per cent compared with the same period last year to SKr23.3bn ($2.9bn).

But the positive effect of rising sales was neutralised by a steep decline in the value of the Swedish krona, which eroded margins and contributed to a 12 per cent drop in after-tax profit to SKr2.6bn.