Hennes & Mauritz Posts Higher Q2 Profit

Sweden's Hennes & Mauritz AB HNNMY reported a rise in its second-quarter profit. H&M's quarterly net profit surged 25% to 5.81 billion Swedish kronor ($875.5 million), versus a year-ago profit of 4.66 billion kronor. However, analysts were expecting a profit of 5.36 billion kronor. Its sales including VAT came in at 44.18 billion kronor, while sales excluding VAT rose to 37.83 billion kronor versus 31.64 billion kronor. H&M announced its plans to open 375 new stores this year. H&M's gross margin narrowed to 60.8% from 61.1%. The company's press release offered the following comment from Chief Executive Karl-Johan Persson: "We have had a good second quarter with a strong increase in both sales and profits and increased market share." H&M shares gained 0.81% to close at $8.74 yesterday.