Swedish budget fashion chain H&M increases market share on strong sales, profit growth

MarketsAssociated Press

Swedish budget fashion chain Hennes & Mauritz AB says its three-month earnings surged 35 percent to 3.6 billion kronor ($420 million) on strong sales growth as shoppers were attracted by new collections.

The net profit in the period ending Feb. 28 was up from 2.6 billion kronor in the same three months a year earlier. Net sales were 40.2 billion kronor, up 25 percent from 32.1 billion kronor a year earlier.

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CEO Karl-Johan Persson said Tuesday the "very good start to 2015" was boosted by good collections and strong expansion of its online services and new stores, including in Taiwan.

It also plans eight more stores in Portugal, Poland, the Czech Republic, Romania, Slovakia, Hungary, Bulgaria and Belgium, and new market lines in Peru and Macau.