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H&M profits soar as 3,000th store launched

Swedish fashion retailer Hennes and Mauritz (H&M) announced a 22 percent net increase in profits for the third quarter Thursday and predicted continued expansion in China.

Published: 27 September 2013 07:32 CEST
H&M profits soar as 3,000th store launched

The company, which opened its 3,000th store in the southwest Chinese city of Chengdu in September, wrote in a statement that “the third quarter has been very good as regards both sales and profits”.

The net profit of 4,431 million kronor ($690 million) – which the retail group put down to strong sales “particularly in Asia but also in a number of European markets” – surpassed the expectations of many analysts.

The retail group added in a statement that following a successful online store launch in the United States in August it planned to continue its global expansion.

“China is the country where our expansion is strongest but we are also expanding in other exciting regions… In October this year we will open in another country in southeast Asia – in Indonesia via franchise – and in the first half of 2014 we will open our first store in Melbourne, Australia. In 2015 we plan to open in South Africa.”

AFP/The Local/og

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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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