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H&M

Strong profits for clothing retailer H&M

The Swedish high-street clothing chain H&M reported a surge in first-quarter profit on Thursday, saying that an aggressive drive into world markets was paying off.

Published: 27 March 2008 09:47 CET

From December to February net profit rose by 27.7 percent from the figure twelve months earlier to 2.941 billion kronor ($ 493.5 million).

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 twelve months earlier.

Sales rose by 17.9 percent to 23.24 billion kronor, including sales tax.

Excluding this tax, sales totaled 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.

BUSINESS

Swedish retailer H&M sees profits slump after Russia exit

Swedish fashion retailer H&M reported a sizeable drop in third-quarter profit on Thursday following its decision to leave the Russian market.

Published: 29 September 2022 12:38 CEST
Swedish retailer H&M sees profits slump after Russia exit

The world’s number two clothing group is among a slew of Western companies that have exited Russia following Moscow’s invasion of Ukraine.

H&M paused all sales in the country in March and announced in July that it would wind down operations, although it would reopen stores for “a limited period of time” to offload its remaining inventory.

The company said Thursday its net profit fell to 531 million kronor ($47 million) in the third quarter, down 89 percent from the same period last year. “The third quarter has largely been impacted by our decision to pause sales and then wind down the business in Russia,” chief executive Helena Helmersson said in a statement.

The group said in its earnings statement that it would launch cost-cutting measures that would result in savings totalling two billion kronor.

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