SWEDISH fashion retailer H&M yesterday posted a 23 per cent jump in second quarter profits, boosted by strong sales of its Spring collection, in spite of the tough retail environment.
The company reported a net profit rise of 5.2bn krona (£474m) in the three months to 31 May, up from Skr4.3bn last year, beating consensus forecasts.
Sales excluding VAT increased by 15 per cent to Skr31.7bn.
Gross margins, which suffered in the first quarter of the year, remained flat at 61.7 per cent from the same period last year.
“The spring collections have been well received by our customers as shown by our increased market share in a fashion retail market that continues to be challenging,” Karl-Johan Persson, chief executive said.
H&M currently has 2,575 shops worldwide. It said it was on track to open around 275 new stores this year, also launching in five new countries – Bulgaria, Mexico, Latvia, Malaysia and Thailand.