Swedish low-cost fashion brand Hennes & Mauritz AB has announced first-quarter profit dropped to 803 million kronor ($86.4 million), down from 1.4 billion kronor a year ago, saying the earlier period was positively affected by one-off tax income as a result of U.S. tax reform.
The Stockholm-based group says its quarterly sales increased by 10 percent to 51 billion kronor ($5.5 billion).
Chief Executive Karl-Johan Persson said Friday sales had developed in physical stores and online, most noticeably in China and India where they grew respectively 16 percent and 42 percent. During 2019, the group will be launched on two of India's largest e-commerce marketplaces.
He added that the "ongoing transformation work has contributed to stronger collections with increased full-price sales, lower markdowns and increased market shares."