Swedish fashion retailer Hennes and Mauritz (H&M) has announced a 22 per cent net increase in profits for the third quarter and predicts continued expansion in China, as it prepares to open its first store in Melbourne.
The company, which opened its 3000th store in the southwest Chinese city of Chengdu in September, wrote in a statement that “the third quarter has been very good as regards both sales and profits.”
The net profit of 4,431 million kronor ($740.78 million) – which the retail group put down to strong sales “particularly in Asia but also in a number of European markets” – surpassed the expectations of many analysts.
The retail group added in a statement that following a successful online store launch in the United States in August it planned to continue its global expansion.
“China is the country where our expansion is strongest but we are also expanding in other exciting regions… In October this year we will open in another country in southeast Asia – in Indonesia via franchise – and in the first half of 2014 we will open our first store in Melbourne, Australia. In 2015 we plan to open in South Africa.”
Credit: AAP