H&M says profit up by $1.2 billion as world opens up again

STOCKHOLM (AP) — Low-cost fashion brand Hennes & Mauritz AB said Thursday its profit for the second quarter soared by 10 billion kronor ($1.2 billion) to 3.6 billion kronor ($422 million) as many of its stores opened worldwide.

Sales for the period March 1–May 31 increased by 75% compared with the same period a year earlier. The retailing company at that time reported a loss of 6.48 billion kronor ($760 million).

“As more and more people are vaccinated and restrictions are eased, the world is gradually opening up and customers can once again visit our stores,” said Helena Helmersson, chief executive of the Stockholm-based company, the world’s second biggest fashion retailer that is known for the brand H&M.

“With the combination of much-appreciated collections, rapid adaptation and further improvements, our recovery is strong," she added, also saying that the third quarter has “started well” with the Swedish group “almost back at the level we were at before the pandemic.”

Net sales amounted to 46.5 billion kronor ($5.4 billion), up from 28.7 billion kronor.

At the start of the quarter, about 1,300 stores were temporarily closed because of the pandemic. Last month, the group said that those that remained open faced coronavirus restrictions, including those on opening hours, number of customers allowed and store space.

Apart from H&M, the group also includes brands like COS, Monki, Weekday, Cheap Monday, & Other Stories, H&M HOME, ARKET and Afound.