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H&M reports surge in quarterly profit on world expansion

By
AFP
Published
today Mar 27, 2008
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STOCKHOLM, March 27, 2008 (AFP) - The Swedish high-street clothing chain H&M reported a surge in first-quarter profit on Thursday March 25th, saying that an aggressive drive into world markets was paying off.


H&M et Marimekko - Illustration : Liselotte Watkins

From December to February net profit rose by 27.7 percent from the figure 12 months earlier to 2.941 billion kronor (312.4 million euros, 493.5 million dollars).

In the second quarter the company would increase its international presence, planning to open 54 shops, most of them in Britain, the United States, Spain, Italy and Germany, and to close four.

In the first quarter the group had opened 11 shops and closed four and at the end of February had a total of 1,529 shops throughout the world compared with 1,351 12 months earlier.

Sales rose by 17.9 percent to 23.24 billion kronor, including sales tax. Excluding this tax, sales totalled 19.74 billion kronor, exceeding the average estimate by analysts of 19.32 billion kronor.

H&M said that the strong trend of sales was the result of well-chosen clothing ranges, and increased sales on the Internet and via catalogues and international expansion.

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