SWEDEN: Strong krona hits H&M Q2 profit
- Q2 net profit down 18.3% to SEK4.257bn
- Sales up 2.2% to SEK27.6bn
- Sales rise 12% in local currencies
Clothing retailer H&M Hennes & Mauritz posted an 18.3% fall in second quarter profits, with a double-digit sales surge in local currencies impacted by the strength of the Swedish krona.
The Swedish company said sales had risen by 2% in comparable units in the three months to 31 May.
Company CEO Karl-Johan Persson said H&M had continued to gain market share despite the challenging trading conditions.
“Increasing interest rates, higher energy prices and austerity measures in many economies have decreased consumer spending power,” he added.
“During the spring, the fashion retail industry has been characterised by many price campaigns and special offers.”
Persson said the continued strength of the krona had continued to have a “substantial negative effect” on reported profits.
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