Stockholm, (APP - UrduPoint / Pakistan Point News - 27th Jun, 2024) H&M posted on Thursday a 52-percent jump in net profit for the second quarter as the 's second biggest fashion retailer pressed on with efforts to control costs. Chief executive Daniel Erver said the had achieved its " profit and cash flow for many years" in the April-to-June period, with profit after tax reaching five Swedish kronor ($473 ). He said the group's profitability performance was strong in the first half of the year thanks to "gradual improvements in sales development" and "continued good control".
Sales rose by three percent to 59.6 kronor at the 's second biggest fashion retailer after Zara owner Inditex. Its operating profit rose to seven kronor but it was lower than the 7.
5 kronor expected by analysts surveyed by financial data firm FactSet. "With a sharp increase in profit for four consecutive quarters, we are well on the way to achieving our long-term goal of profitability exceeding 10 percent over time," Erver said. "However, the conditions for achieving that level this year have become more challenging," he said.
Erver said external factors that influence the group's purchasing costs and sales revenues, including materials and foreign exchanges, "will have a more negative impact than we expected in the second half of the year". Sales in are expected to fall by six percent compared to the period last year as "unstable " hit many of the group's large at the start of the month, H&M said..
