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SWEDEN: Clothing retailer records increase in profit

STOCKHOLM:  H&M ( Hennes & Mauritz AB) recorded 31% increase in second quarter profit.

The Swedish company has opened stores in Hong Kong and Shanghai and sold Madonna designed dresses.  It’s Europe’s second largest clothing retailer. 

The company’s net income rose to 3.47 billion kronor, or 4.19 kronor a share, in the three months through May from 2.65 billion kronor, or 3.20 kronor, a year earlier.

H&M, has about  1,400 stores in 28 countries. It increased its outlets to compete with Inditex SA, which surpassed the Swedish company as Europe's biggest clothing seller two years ago.

The M by Madonna range, such as silk dresses priced at $69.90, went on sale in March. It had a great impact on sales.  After the company introduced the Madonna range the revenue gained 17 percent in March.  The company will collaborate with designer Roberto Cavalli.

The company expects Cavalli to be well received by customers.

H&M is opening its first stores in Asia as rival Inditex plans Massimo Dutti stores in Hong Kong and Macau. The Spanish company, which has more than 3,200 stores, last week reported a 33 percent increase in first-quarter profit.

H&M also said preparations to expand into Japan next year are going according to plan.

H&M operates three stores in China which had sales of 150 million kronor. Sales rose 12 percent in Germany and 19 percent in the U.S.

The Cavalli range of women's and men's clothes is scheduled to go on sale Nov. 8 in around 200 stores in all the countries where H&M does business.

The company will continue to look for more collaborations to boost sales.

H&M buys more than 60 percent of its clothes in Asia and sells them at about double the price. The company's biggest market is Germany, one of the countries that uses the single European currency.

Source: Agencies • News Courtesy: BharatTextile.com