Profits at H&M fall less than expected
H&M, the Swedish fashion retailer, has reported a less than expected 15% fall in its third quarter profits as it fought against the effects of a strong Swedish currency and poor summer weather on sales.
Net profit for the three months to 31 August was 3.59 billion kronor down from 4.24 billion kronor in the same period a year earlier.
Total sales for the quarter reached 26.91 billion kronor from 26.89 billion kronor a year earlier.
The retailer has been struggling against higher cotton prices and increased labour costs in Asia where it manufactures 75% of its clothing.
H&M said it planned to open more stores than orginally planned in the coming year. President and chief executive Karl-Johan Persson said: "H&M continues to gain market share in a challenging environment for the fashion-retail industry. We are increasing our expansion for full-year 2011 to approximately 265 new stores net, from the originally planned 250."
H&M currently has a total 2,325 stores worldwide.
The retailer is planning to launch a collection by Donatella Versace later this year.
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