H&M Q1 Profit Down, Sales Rise; March Sales Up
STOCKHOLM (dpa-AFX) - Swedish retailer Hennes & Mauritz AB (HNNMY.PK, HMRZF.PK, HEN.L) reported Thursday that its first-quarter profit after financial items amounted to 3.21 billion Swedish kronor, lower than last year's 3.33 billion kronor. Profit after tax amounted to 2.46 billion kronor, down from 2.55 billion kronor a year ago.
Earnings per share declined to 1.48 kronor from 1.54 kronor last year.
Profits in the quarter were negatively affected by lower sales growth than planned as well as higher mark-downs, the company said.
H&M group's sales including VAT increased 7 percent to 54.37 billion kronor from 50.62 billion kronor in the prior year. Sales excluding VAT amounted to 46.99 billion kronor, up 8 percent from last year. Sales in local currencies increased by 4 percent in the first quarter.
Further, the company said its sales including VAT in the month from March 1to March 28 increased 7 percent in local currencies.
The company noted that total sales in March, April and May should viewed together, since Easter and weather effects during this period affect the comparability of an individual month.
Copyright RTT News/dpa-AFX