STOCKHOLM: Hennes & Mauritz AB says second-quarter net profit fell 17 percent as the Swedish fashion retailer continued to be hit by a strong US dollar causing high costs.
The group’s sales increased 2 percent in the quarter to 54.3 billion kronor (US$6.6 billion), while profit dropped to 5.3 billion kronor from 6.4 billion a year earlier, with increased markdowns and investments. CEO Karl-Johan Persson described the first half of the year as “challenging,” but yesterday said he expects future growth for the Stockholm-based company that has 4,000 stores in 62 markets, with plans to open more than 400 more this year.
