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H&M Profit Beats Expectations as Concerns of Slowing Sales Mount
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The Business of Fashion
Swedish fast-fashion retailer Hennes & Mauritz AB beat profit expectations for a third consecutive quarter, aided by tight cost controls and upgraded collections that proved popular with shoppers.
Operating profit in the fiscal fourth quarter ended November of 6.36 billion kronor ($723.2 million) exceeded the 5.5 billion kronor analysts had expected.
Net sales hit 59.22 billion kronor, compared with analyst estimates of 59.5 billion kronor.
H&M has lagged behind Spanish fast-fashion retailer Zara, which has a leaner supply chain and a faster fashion cycle.
By Rafaela Lindeberg, Jenny CheLearn more:Why Fast-Fashion Retailers Can’t Crack BeautyStores like H&M, Zara and Primark are experimenting with selling makeup, hair care and fragrances.