Hennes & Mauritz, Europe's largest clothing retailer, said sales in July rose 14 percent as it increased the total number of stores by 11 percent by expanding in markets such as the US and Canada. Revenue excluding currency movements decelerated from June's 15 percent gain, the Stockholm-based company said in a statement on Waymaker. Analysts expected a 15 percent increase, according to the median estimate of 10 analysts surveyed by SME Direkt.

Hennes and Inditex, a Spanish competitor, are expanding in new markets to generate more profit. The Swedish company is focusing on countries such as the US, Poland and the Czech Republic, selling clothes such as sleeveless women's tops for as low as 2.90 euros and bikinis for 4.99 euros.