Swedish fashion giant H&M has fought off stiff UK competition from Primark and New Look to report a surge in profits today, as shoppers begin their summer spending spree.
Investments in new shops across the globe and expansion online helped the world’s second-largest fashion retailer, behind Zara owner Inditex, post a 26% rise in operating profits to SKr7.6 billion (£647.2 million).
The retailer’s brands, which include Cos, & Other Stories, Monki and Cheap Monday, all performed strongly in May as sales rose, the company said, adding that June had begun well.
H&M chief executive Karl-Johan Persson said: “We are seeing some of our long-term investments starting to generate revenues such as & Other Stories and our online store in the US and in France.”
The cheap chic retailer, which has 3,285 stores, revealed plans to expand its shoe range in autumn and launch online shops in eight to 10 countries next year.
Verdict senior retail analyst Honor Westnedge said: “H&M has a great position in the value market. People go there for better quality clothes and interesting new products, which it has invested in.”
