H&M clothing sales beat expectations
H&M, Europe's number two fashion retailer, has reported first-quarter profits that beat analysts' estimates as the company cut back on discounting without harming sales or market share.
Net income rose 36pc to 3.61bn kronor (€385m) in the three months ended February 28, the Stockholm-based company said in a statement yesterday.
Gross margin, a measure of profitability, grew unexpectedly strongly in the quarter, a consequence of fewer markdowns.
H&M, which in addition to its namesake brand also owns labels such as COS and Monki, is battling the strength of the dollar, which it has said will add to purchasing costs this year, particularly in the second half of the year.
Shares rose as much as 2.2pc in early trading in Stockholm yesterday.