Second-quarter profits of H&M get a 23% boost on back of strong sales


AP

STOCKHOLM–Swedish fashion retailer Hennes & Mauritz AB on Wednesday recorded a near 23 percent rise in its second-quarter profits, citing a period of strong sales of this year’s spring collections.

The Stockholm-headquartered group also said it plans to launch online sales in the United States in the second half of 2012 and that it expects to inaugurate its new store concept “& Other Stories” sometime next year.

The group reported a net profit of 5.22 billion kronor (US$745 million) in the March to May period, up sharply from 4.3 billion kronor recorded in the same quarter a year ago.

Sales climbed to nearly 37 billion kronor in the three-month period, compared with 32.4 billion in the same three months in 2011.

The group said the high price of cotton, which took its toll on the company’s profits in the previous quarter, has normalized.