Swedish retail clothing giant H& M, which has recently opened some shops here, today reported fourth-quarter earnings. The earnings, while improved, fell short of market expectations because of sluggish sales and increased costs.
Pre-tax profit for the three months to November 30, the company's fourth quarter, was 4.297 billion kronor (€464m) against 4.056 billion a year earlier.
After weak sales early in the quarter, H&M, or Hennes and Mauritz, said that it had allocated extra resources to marketing which had increased operating expenses. The retailer also cited re-introduced export regulations in China as a reason for rising costs of goods.
H&M said it was planning to open 150 new stores during the current financial year. The main areas of projected expansion are the US, Spain, Germany, Britain, France and Canada.
The company also said it would boost online and catalogue sales, and had targeted the Netherlands as the first country outside the Nordic region for the expansion drive.
