Profits rise for H&M
By Sarah Wood | 27th September 2023
Fashion giant, H&M, has posted a bigger than expected rise in quarterly profits.
That is despite sales remaining mostly flat, as work to cut costs has started to pay off, as reported by Retail Gazette.
Operating profit for the retailer, which has stores in Gloucester and Cheltenham, rose to £353m in the three months to August 31 - up from £67m.
Net sales for the third quarter rose by 6% to £4.55bn, with a strong start in June, following a cold May, then weaker demand in July and August, due to more unseasonable summer weather.
H&M posted a 61% increase in operating profit for the nine months of the year so far to £761m, up from £473.5m.
It said the start of its autumn sales season has been delayed by unusually hot September weather across most of its European markets.
The fashion retailer introduced its cost-cutting programme last year, following a fall in profits, which it predicts will continue to have a positive effect on profits in the coming months.
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