H&M sales buoyed by further expansion, cost controls

Markets Associated Press

Swedish low-cost fashion brand Hennes & Mauritz AB says second quarter sales increased by 10 percent to 59.5 billion kronor ($7 billion) mainly because of its continued expansion and tight control on costs.

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Its net profit for the three-month period rose by 10 percent to 7.7 billion kronor.

CEO Karl-Johan Persson says online sales developed "very well" while the group's other brands — COS, & Other Stories, Monki, Weekday and H&M Home — "remained very strong, both in stores and online."

However, sales were "more challenging" in several major markets, including the U.S. and China, among others.

The Stockholm-based group said Thursday that it added six new markets — Turkey, Taiwan, Hong Kong, Macau, Singapore and Malaysia — to its online offering during the period, taking the total to 41.