Move over, Gap (NYSE:GPS). Swedish clothing chain Hennes & Mauritz (Pink Sheets: HNNMY.PK) is the world's biggest apparel retailer now.

According to Swedish business daily Affarsvarlden, there are now 1,569 stores under the H&M name worldwide, passing former world leader Gap. The Yankees still command greater sales, with $15.4 billion in trailing revenue versus the Swedes' $13.8 billion. And if you add in auxiliaries like Old Navy and Banana Republic, the Gap comes out on top again in terms of store count. But H&M is coming on strong, no matter how you slice it.

While Gap closed 55 stores last quarter, H&M is growing. The company expects to grow its store network by 10% a year for the foreseeable future, and that includes moving into exciting new markets like China and Russia, where the Swedes have been scarce so far.

While the 13% sales growth the company experienced over the last 12 months might not quite put H&M in the same hypergrowth league as Guess? (NYSE:GES) or Urban Outfitters (NASDAQ:URBN), it's way better than the stalled growth we see at American Eagle (NYSE:AEO) and Abercrombie & Fitch (NYSE:ANF) -- not to mention Gap's shrinkage. And don't forget that H&M commands a $41 billion market cap back in Stockholm, three times the size of Gap, and more than seven times as big as Urban Outfitters.

The Pink Sheets stigma keeps H&M out of the limelight, despite its massive bulk and growth prospects. But the Swedish stock market requires high-quality financial reports, and the big guys publish them in English as well. If you were thinking about investing in Guess? or Aeropostale (NYSE:ARO) someday soon, you might want to add this discreet Nordic giant to your research list. That's what I did when fellow Fool Bill Mann showed me the beauty of Swedish fashions back in 2005, and my shares have gained 36% in value, while the S&P 500 has barely moved.

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