Swedish cheap'n'chic clothing group H&M said today its first quarter net profit fell by 12.4% to 2.57 billion kronor (€236m) due to a weaker Swedish currency.
Sales in the December-February quarter rose 18% from the same time a year ago to 23.3 billion kronor but the net profit was affected by the krona's devaluation, it said. At an operating level, earnings dropped 11.4% to 3.36 billion kronor.
From September to early March, the krona lost around 23% of its value against the euro and 42% against the dollar. It has in recent weeks regained some ground, however.
Hennes & Mauritz, which has nine stores in Ireland and is the world's second-biggest clothing retailer behind Spanish group Inditex which owns the Zara chain, was optimistic about the future.
'H&M remains positive towards the future expansion and the company's business opportunities,' it said.
It said it planned to open 74 new stores in the second quarter, compared to 48 during the same quarter last year. However, it will also close seven stores, up from four a year ago.
