H&M set for further international expansion, but reports declining results

Cotton price and strong krona take toll at H&M set for further international expansion according to the Financial Times. 

Hennes & Mauritz Q4 results
Sales	Net profit	Earnings per share	Dividend
SKr29.7bn	SKr5.4bn	SKr3.32	SKr9.5
↑6%	↓10%	↓10%	↑18%

The world’s third-biggest fashion retailer by sales reported a surprise 10 per cent drop in profits as margins were hurt by rising input costs.

H&M is especially vulnerable to rising raw material costs because its rapid global expansion has been based on a reputation for high-quality fashion garments at low prices.

H&M is also facing currency pressures after a 14 per cent appreciation in the Swedish krona against the troubled euro over the past year.

Karl-Johan Persson, chief executive,

 said H&M would press ahead with plans to open a further 250 stores this year and expand its online retailing operations in the US and elsewhere.