The Swedish retailer has faced difficult market conditions so far in 2016
Fashion retailer Hennes & Mauritz (H&M) registered a larger than expected increase in sales last month - in local currencies they rose by 10% - ahead of the 9% forecast.
The company's shares enjoyed an initial bounce of almost 3% before retreating to an increase closer to 2%.
Before the publication of the results the company's shares had fallen by 8% during the first half of 2016.
July was the tenth month in a row in which sale growth was slower than the corresponding month in 2015 as the fast fashion chain has fought challenging market conditions and adverse weather in key markets.
The company has experienced a financial squeeze as sales have featured larger than normal markdowns, and currency fluctuations have made purchasing from Asia more costly - it has also been pumping money into its online resources.
It opened its Irish online store in March of this year.