by Christopher Freeburn | June 20, 2012 10:56 am
Swedish clothing retailer Hennes & Mauritz (PINK:HNNMY) recorded fiscal second-quarter pre-tax earnings of 7.1 billion Swedish crowns, up from 5.8 billion crowns during the same time last year.
Analysts had expected earnings of 6.6 billion crowns, Reuters noted.
The retailer said its gross profit margin for the quarter was 61.7%, which topped analysts’ prediction of 61.1%.
H&M shares rose more than 5% in over-the-counter trading on Wednesday.
The company has refrained from raising prices, despite escalating costs for commodities like cotton, attracting new customers, but lowering margins.
European retailers are facing a challenging market as the continent continues to struggle through an economic downturn, marked by austerity measures implemented by a number of governments.
The company operates about 2,500 stores, and is expanding in the U.S., China and Russia.
H&M officials said the company’s spring and summer clothing lines were selling well in all major European markets.
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