H&M misses forecasts after spending spree

 
Kasmira Jefford
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H&M has teamed up with stars like David Beckham
HENNES & Mauritz posted lower than expected fourth quarter earnings yesterday as the Swedish fashion giant splashed out on new ranges and websites in its battle against increasing competition from rivals.

The retailer said pre-tax profits for the three months to the end of November rose seven per cent to 7.8bn Swedish kronor (£600m), missing analysts’ average forecast of SEK 7.96bn, with sales up 17 per cent to SEK 42.6bn.

H&M is investing in new ranges such as sportswear and wedding dresses, in order to protect its margins against price-cutting rivals.

It is also expanding into new markets such as India, with plans to open 400 stores this year, as it seeks to reduce its exposure to sluggish European markets.

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