Swedish fashion retailer Hennes and Mauritz today reported a tiny 1% rise in third quarter net profits.
It said that although its clothing lines sold well at the start of summer, the European financial crisis and poor weather conditions in August restrained consumption more than expected.
The Stockholm-headquartered group posted a net profit of 3.6 billion kronor ($549m) in the three-month period, up slightly from 3.59 billion kronor the same time a year ago.
Aside from lower than expected sales at the end of the summer, currency fluctuations also hurt its income.
Revenues for the third quarter came to 33.57 billion kronor, up from 31.51 billion kronor.
H&M said it will ramp up its expansion rate for the full year 2012, and now plans to open 300 new stores instead of the previously planned 275.
The company also said it plans to launch a new fashion brand, & Other Stories, in the first half of next year, which will be located in separate stores.
The clothes will focus more on quality and will be higher priced than its normal fashion lines.
