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    Fashion Retailer H&M Decided To Postpone The Opening Of Some Stores

    2010/10/14 10:00:00 43

    Fashion Retailers

    Fashion retailer Hennes&MauritzAB (H&M) said

    Construction business

    Depressed, it will postpone the opening hours of some stores this year. The company recently announced that its net profit in the third fiscal quarter has increased by 23%.


      

    Fashion retailers

    Hennes&MauritzAB (H&M) said that due to the sluggish construction industry, it will postpone the opening of some stores this year. The company recently announced that its net profit in the third fiscal quarter has increased by 23%.


    The Swedish retailer said the company achieved a profit of 4 billion 240 million Swedish kronor ($627 million 500 thousand) in the current quarter of August 31st, up from 3 billion 460 million Swedish kronor in the same period last year.

    Revenue grew by 14% over the same period to 26 billion 890 million kronor.


    H&M has been opening new stores rapidly in recent years to expand business in emerging market countries.

    Although the company has maintained a strong growth in same store sales, the opening of new stores has also been driving the company's profit growth.


    The company is the world's third largest fashion by revenue.

    Chain store

    After GapInc. in the United States and InditexSA in Spain, it has about 2000 stores in 37 countries.


    H&M said Wednesday that due to the downturn in the economy, the shopping center has been declining in volume, and the company is unable to find enough shops in prime locations to open new stores, especially in southern Europe.

    H&M now expects to add 220 new stores this year, and it plans to open 240 new stores this year.


    Persson, chief executive of the company, said H&M has been studying the southern hemisphere market, including Australia and South Africa, but logistics is an obstacle to the expansion of the company in the southern hemisphere. Karl-JohanPersson


    Persson said, we are studying the southern hemisphere market and trying to integrate it into our current business expansion, but it is too early to announce what market we plan to enter.

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