High street fashion retailer H&M has reported a 12 per cent rise in profits for the first six months of the financial year.
From December 1st 2011 to May 31st 2012 sales excluding VAT amounted to £27,632 million in local currencies in the second quarter.
Gross profit for the company was £17, 057 million to a gross margin of 61.7 per cent.
Profits this quarter have been boosted by demand for the retailer‘s spring fashion collections.
Karl-Johan Persson, CEO of H&M commented, “The year started well and the positive trend continued in the second quarter.
“In the second quarter we saw strong sales and profitability development, with a profit increase of 23 percent.
“The spring collections have been well received by our customers as shown by our increased market share in a fashion retail market that continues to be challenging.
“H&M‘s attractive customer offering is appreciated by customers in all our 44 markets, in big cities as well as small cities – and in both countries with strong economic growth and countries with a tough macroeconomic climate.”
Plans to extend its portfolio mean it will be opening stores in the emerging markets of Indonesia and Estonia by 2013. This is in addition to the five to be opened in 2012.
In reporting last week it was announced that H&M plans to launch its latest collaboration with Paris based fashion house Maison Margiela in the autumn.
Persson continued, “Our expansion plan remains intact.
“We plan to open around 275 new stores net during the full-year.
“We continue to open new stores in all current markets and we will add five new markets during the year: Bulgaria, Mexico, Latvia, Malaysia and Thailand. In addition, online sales will be launched in the autumn in the US, the world‘s largest online market.”