H&M: Q3 profit rose slightlyThursday, 27 September 2012
H&M reported a lower-than-expected 0.8 percent rise in third-quarter net profit on Thursday.
The Stockholm-headquartered group posted a net profit of 3.6 billion kronor (549 million dollars) in the three-month period, up slightly from 3.59 billion in the year-ago period. Total third-quarter sales excluding value-added tax rose to 28.81 billion kronor, from 26.91 billion a year earlier. Operating profit increased to 4.80 billion kronor from 4.71 billion, below a forecast of 5.15 billion. According to H&M this was due to a heatwave in Europe which kept shoppers away last month.
H&M remained upbeat on the prospects for future growth and raised its target for store openings this year to 300 from a previous 275. But the company also said it’s delaying the start of online sales in the U.S. until summer next year.
H&M earnings contrast with Inditex’s. The Spanish retailer said on Sept. 19 that sales have accelerated since July and reported first-half profit that beat analysts’ estimates, helped by expansion in emerging markets.
"Conditions in the fashion retail industry continued to be challenging in many markets - both as regards the weather and the macro-economic climate," said CEO Karl-Johan Persson in a statement.