HENNES & Mauritz has pledged to continue its aggressive expansion into new markets despite revealing a surprise fall in fourth quarter profits, as high cotton prices and a strong Swedish currency take their toll.
The world’s second largest clothes retailer reported a five per cent drop in pre-tax profits to SEK6,802m (£640.8m), missing analyst expectations of SEK7,136m.
However, chief executive Karl-Johan Persson said H&M continued to grow its market share “during what was one of the toughest years” for the retail sector.
H&M plans to open 275 stores this year, worldwide. It will also venture into new five new markets including Malaysia, Thailand and Mexico.