H&M eyes expansion as Q4 profit soars

Swedish budget retailer, Hennes & Mauritz (H&M), has today announced it is to open 240 new stores this year in Europe, Asia and the US after it posted a better than expected 21% rise in Q4 profits.

The fashion chain also said it was about to enter the Israeli market, with outlets in Tel Aviv, Jerusalem and Haifa.

For the three months to 30 November, profit grew to 6.2 billion kronor (£524 million; $853 million), up from 5.1 billion kronor in the same period a year ago.

However, like-for-like sales (which exclude the impact of new stores) were down 6% in three-month period.

In a statement, the company said: “H&M remains positive towards future expansion and the company’s business opportunities.”

The retailer, which is the third biggest in the world after Gap and Spain’s Inditex, which owns Zara, opened 250 new stores in the previous fiscal year between December 2008 and November 2009.

The company has a global workforce of 53,500 people.

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