H&M Reports $196 Million Profit in Three Months

H&M, the world's second-largest publicly traded fashion retail chain, recorded operating profits for the first quarter that exceeded expectations, thanks to a smaller-than-expected decline in sales. The Swedish group's operating profit amounted to 2.08 billion crowns (approximately $196 million), compared to 725 million crowns for the same period last year, significantly higher than the 1.43 billion crowns forecasted by analysts in a survey conducted by the London Stock Exchange Group. Sales decreased by two percent, which was better than analysts had anticipated, while sales at the beginning of the second quarter rose by two percent, indicating an increase in demand for clothing and accessories. CEO Daniel Ervher, who took office two months ago, stated, "Sales improved gradually throughout February with the spring collections being well received, which is a positive sign that we are on the right track." H&M announced its goal to achieve an operating profit margin of 10 percent over the course of this year.