Warm weather and strong dollar weigh on H&M third quarter profits

Swedish clothing retailer Hennes & Mauritz (H&M) said Friday its third-quarter net profit dropped due to a strong US dollar, warm weather and markdowns.

The company reported net profits of 4.8 billion kronor (560 million dollars), compared with 5.3 billion kronor in the same period the year before.

Sales in the June to August period converted into Swedish kronor and excluding value-added tax increased 6 per cent year-on-year to 48.9 billion kronor.

Chief executive Karl-Johan Perssion said "unseasonably hot weather" from mid-August affected autumn sales in many markets.

The strong US dollar also affected purchasing costs, he added.

The group operated 4,135 stores, including franchises, at the end of August, an addition of 211 stores compared to a year ago.

At the year-end it expected to have stores in 64 countries and recently opened its first store in Cyprus. It planned to have 35 online markets at the end of the year with the pending addition of Canada and South Korea.

Last update: Fri, 30/09/2016 - 10:56
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