H&M Net Profit Rises 25% As Group Increases Full Price Sales

PARIS — H&M group reported a 25 percent jump in third quarter profit, lifted by full price sales, as overhaul efforts resulted in fewer markdowns. Profit for the three months ending Aug. 31 was 3.86 billion Swedish Kronor, or $389 million, driven by brisk sales grown in the U.S., Italy and Poland, according to the Swedish fast fashion retailer. Sales in September increased 8 percent, with a positive weather effect in the first part of the month. “Our ongoing transformation work to meet customers’ ever-increasing expectations is bearing fruit,” said Karl-Johan Persson, H&M chief executive officer of the quarterly performance. H&M has based its turnaround efforts on investments in technology, improving its offer, sprucing up stores and bolstering online services, with a focus on logistics operations. It is also expanding digitally and opening new stores in markets. At the same time, it is working to increase the amount of sustainable materials it uses to make clothing. As reported, sales over the quarter rose 12 percent and it gained market share over the period, slightly beating market expectations.

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