Profits at H&M fall less than expected
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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