Swedish clothing retailer Hennes & Mauritz (H&M) has reported better than expected first quarter results boosted by new store openings. It reported a 20% increase in pre-tax profits for the three months to February 29.
The budget fashion company also reported net income of SEK2.94bn (£245m) and the retailer is now expanding its online offering to further boost sales.
It says sales for February were up by 24% – beating analysts’ predictions of 17% – because new store openings increased turnover by 10%. The retailer has also collaborated with celebrity designers such as Roberto Cavalli and pop stars such as Kylie Minogue to drive consumers to its stores.
H&M introduced online sales in Austria and Germany last year and in the Netherlands in 2006. The company does not give details about its internet sales and profit. H&M operated 1,529 stores on February 29 this year, compared to 1,351 the year before.
Earlier this month, the company bought Swedish fashion company Fabric Scandinavien, gaining cult brands such as Cheap Monday denim. The retailer also plans to create a home decoration unit.