Reduction in discounts pays off for H&M group
Clothing giant H&M, which has eight stores here, has reported an increase in sales during the first half as its efforts to reduce the level of marked-down items paid off.
Sales increased by 11% to 108.49 billion Swedish Krona (£9.22bn) in the six months to May 31, with net sales up 5% in local currencies.
But profits fell as the group invested in its new strategy, dipping just over 4% to 6.98bn Krona (£593m) after financial items.
The company expects the transformation efforts to gradually contribute to higher profitability, despite the initial dampening impact.
Chief executive Karl-Johan Persson said: "The H&M group continues to increase full-price sales, reduce markdowns and increase market share, showing that customers appreciate our collections and the improvements we are making."
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