Fashion giant H&M reports 6% rise in Q2 profit

Fashion giant H&M reports 6% rise in Q2 profit

Hennes & Mauritz, the world's third-biggest clothing retailer by sales, reported a higher than expected 6 percent rise in its second quarter profits, beating earlier forecasts. Sweden-based fast-fashion giant, Hennes & Mauritz, said sales in stores open for at least a year plunged 2 percent in the three months to the end of May, easing from a 5 percent drop the previous quarter.

Speaking on the topic, Soren Lontoft Hansen, an analyst at Sydbank, said, "Let's call it a very solid report from H&M today where a lot of focus was on the gross margin." Almost all retailers in Europe are struggling with the worst economic recession since the Second World War, though signs of economic improvement have started to emerge.

Hennes & Mauritz witnessed like-for-like sales slump by 9 percent in May, although it added this was due to impact of a contrast against last year, when sales climbed by 25 percent in warm weather.

One of the pioneers of fast fashion, Hennes & Mauritz opened six stores in the U. K. in spring, including a new shop in Brighton.

Newly opened stores helped sales in the UK rise 6 percent in the half-year to 3.59 billion crowns, including VAT and on a local currency basis.

Earlier this month Inditex, Europe's biggest clothing retailer, reported a 9 percent increase for the period from May 1 to June 7.

Hennes & Mauritz, which has over 1,800 shops in more than 30 countries, operates 148 shops in U. K. It opened its first UK store in 1976.