H&M reports double-digit profits growth in first half of year
Stockholm - Clothing giant Hennes & Mauritz (H&M) reported Wednesday strong double-digit growth in both sales and profits in the first half of the fiscal year, citing unseasonably early summer weather as a contributing factor.
H&M, the world's largest clothing store chain, said net profit in the six-month period ending May 31 came to 6.9 billion kronor (1.14 billion dollars), up 19.3 per cent from the previous-year period.
The earnings came on sales of 41.4 billion kronor, a 12 per cent year-on-year gain for the corresponding six-month period.
H&M said sales were spurred by the early onset of summer weather, with revnues in the month of May alone a whopping 25 per cent higher than in May 2007. The result show just how "weather-dependent the branch is," a company statement said.
Further factors in the growth was the expansion of its branches and a favourable dollar exchange rate, H&M said.
During the six-month period, H&M opened 59 new clothing stores while closing down eight, putting the group's total number of outlets at 1,593. In the second half of the fiscal year ending November 30, the company plans to add a further 139 stores, with the expansion chiefly targeted in Germany, the United States, Spain and France. (dpa)