H&M sales grow 7 per cent but profits down

Swedish low-cost fashion brand Hennes & Mauritz AB says its first quarter sales increased a modest 7 per cent, with strong growth and profits in online operations. (Photo; H&M/Facebook)

HELSINKI — Swedish low-cost fashion brand Hennes & Mauritz AB says its first quarter sales increased a modest 7 per cent, with strong growth and profits in online operations.

Net sales during the December-February period amounted to almost 47 billion kronor, up from 43.7 billion kronor a year earlier.

Still, the group’s net profit for the period dipped to 2.46 billion kronor ($278 million) from 2.54 billion kronor a year earlier, partly because of higher mark-downs.

H&M CEO Karl-Johan Persson on Thursday described the sales growth as “below our plan.”

Persson added that the fashion retail industry in general was “very tough in many of our large markets” and “this was reflected in our sales.”

The group’s brands include H&M, COS, & Other Stories, Monki, Weekday, Cheap Monday and H&M Home.