H&M sees profit jump 21% after expansion

Swedish retailer Hennes & Mauritz (H&M) has reported a 21% rise in profits for the three months to 30 November after it opened more stores than expected. Fourth-quarter profit rose to 6.2bn kronor (£524m; $853m), up from 5.1bn kronor a year ago.

H&M said the economic downturn provided opportunities for opening 250 new stores, which was 25 more than planned. Like-for-like sales - which strip out the impact of new stores - were down 6% in the period. The clothing retailer blamed the "weak" sales figures on "mild weather during the autumn which had a negative effect on sales of jackets and heavy knitwear", but it remained upbeat about the coming year.

"H&M remains positive towards future expansion and the company's business opportunities," it said. Full-year net profit for the company rose by 7% to 16.4bn kronor and sales before tax climbed 15% to 101.4bn kronor.

H&M had 1,988 stores at the end of November, up from 1,738 a year earlier. It plans to open 240 new stores in the coming year. It also said it was about to enter the Israeli market, with outlets in Tel Aviv, Jerusalem and Haifa.