&Nbsp, H&M Profits Fell Sharply Due To Rising Raw Material Prices.

The performance report released by Hennes&Mauritz (H&M), a Swedish fashion seller, showed that the profit of the company in the second quarter of this fiscal year (March 2011 ~5 month) has declined considerably compared with the same period last year, due to the rising price of raw materials.

In the second quarter of this fiscal year, H&M's global sales amounted to SEK 27 billion 632 million ($1, or 6.4 Krone), an increase of about SEK 600 million, but the pre tax profit was only 5 billion 752 million krona, a decrease of 1 billion 288 million Krona compared with the previous year.

Karl John Persson, CEO of the company, said in a quarterly report that the main reason for the decrease in profits is that cotton prices have risen considerably this year.

In addition, the increase in interest, the rise in the price of energy and the tightening measures taken by some countries have led to a decline in the purchasing power of consumers.