H&M reports strong sales growth
H&M has reported a rise in profits in its third quarter as the high street fashion retailer enjoyed strong sales in Asia and a number of European markets.
In a trading update, the retailer said that net profit rose 22% to 4.4 billion Swedish kronor in the period. Revenue was 32 billion kronor, up from 28.8 billion kronor a year earlier.
H&M chief executive Karl-Johan Persson said: “The third quarter has been very good as regards both sales and profits. Profits after financial items increased by nearly SEK 1 billion. Our well received summer collections have resulted in strong sales development in the quarter, particularly in Asia but also in a number of European markets. We have also seen the very successful launch of our online store in the US in August and can see that our offering stands up well in the world’s largest online market.”
During the past nine months, H&M opened 215 new stores worldwide. While China remains a main target for expansion, the retailer has recently opend its first stores in Chile, Lithuania, Serbia and Estonia. Next month, H&M will make its debut in Indonesia via a franchise store and will open its first store in Melbourne, Australia in the first half of 2014.
Persson added: “We are also continuing to work on our other brands as well as on our global roll-out of online shopping with the aim of launching our online store in more markets during 2014. Expansion continues for our other brands, especially COS and & Other Stories, which continue to do well and will expand even more rapidly next year.”
