STOCKHOLM — Swedish clothing retailer Hennes & Mauritz AB says its second-quarter earnings rose 25 percent as online expansion and new store openings boosted sales.
Net profit in the March-May period was 5.81 billion kronor ($870 million), up from 4.66 billion kronor in the same period a year earlier, clearly beating analyst expectations. Sales rose 20 percent to 37.8 billion kronor.
H&M said Wednesday it plans to open 375 new stores in total this year, an extended shoe range and up to 10 new online markets in 2015.
Rapid expansion lead to a rise of 16 percent in sales and administrative costs in comparison with the previous year, boosted mainly by investments into the company's IT and online systems.
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