Clothing giant Hennes & Mauritz increased profit and reported a profit roughly in line with expectations for the spring months. But shares still fell over two percent.
H&M, the world’s second largest clothing company by Inditex of Spain, reports a profit before tax of 8.435 billion crowns for the period from March to May, the second quarter in the company’s split financial year. Corresponding period of 2014 the company made a profit of 7.643 billion crowns.
Sales developed well considering the conditions, writes CEO Karl-Johan Persson in a statement. “We faced strong comparatives, an unusually cold spring weather in many of our key European markets and negative calendar effects.”
Analysts had on average expected profit of 8.484 billion crowns, according to Reuters, marginally below the reported results. But the stock market became fierce judgment. Shares fell over two percent in initial trading, most of the big companies. Which means that H&M increases profits – the stock falls.
Turnover amounted to 45.867 billion crowns, compared to 37.827 billion crowns a year earlier.
The currency continues to play H&M in hands in terms of sales, which increased ten percent, measured in local currencies, but 21 percent in Swedish crowns. At the same time increases the stronger dollar’s purchasing costs.
Sales in June have so far increased by 14 percent, measured in local currencies, compared to the same period last year.
Expansion continues for the company. During the period, H&M opened eight new online markets: Poland, Portugal, Romania, Czech Republic, Bulgaria, Slovakia, Hungary and Belgium.
“All have been very well received,” Persson writes.
H&M is committed to open a total of 400 physical stores, net, during the fiscal year.