World Clothing Giant H&M Net Profit Fell 30% In The First Quarter

2011/3/31 19:43:00 60

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World Clothing Giant H&M Net Profit Fell 30%

Beijing time March 31st afternoon news, the world's third largest

Fashion retailers

Swedish clothing retailer

Hennes&MauritzAB

The company announced its first quarter earnings in 2011.

Data show that the company's current quarter

Net profit

Compared with the same period last year, it dropped by 30% to 2 billion 620 million kronor ($415 million), and the company's net profit was 3 billion 740 million Swedish kronor in the same period last year.

Hennes&MauritzAB's earnings decline this quarter is mainly due to higher costs and the strength of the Swedish kronor.

Data show that the company's sales (excluding VAT) decreased from 24 billion 850 million Swedish kronor in the same period last year to 24 billion 500 million kronor, down 1.4%.

Analysts surveyed by FactSet had expected the company's net profit for the quarter to be SEK 2 billion 730 million, with sales expected to be SEK 24 billion 920 million this quarter.

The company said cotton prices rose sharply, surplus capacity was reduced, pportation costs were higher, and the US dollar had adverse effects, which led to its gross profit margin in the first quarter of this year, down from 61.9% in the same period last year to 57.8%.

According to its national currency, its sales in February increased by 9% over the same period last year, while sales from March 1st to March 29th increased by only 3% over the same period last year.

The company said it plans to open 97 new stores and close 8 stores in the second quarter of this year. It is expected that China, Britain and the United States will be the largest market for expansion in 2011.