Affordable fashion retailer Hennes & Mauritz (OTC: HMRZF) beat profit and margin expectations for the second quarter of 2009, as currency swings are becoming less costly. Gross margins reached 61%, ahead of the 60.2% forecasted by analysts for the world's third largest clothing retailer. Even though some sales figures were under pressure, H&M has turned in a strong quarter and is well-positioned for the rest of the year, particularly in a tight market for consumers.
H&M's pre-tax profits increased 6.4% to $735 million for the second quarter (which ended on May 31, 2009). The mean forecast was $721 million, according to a Reuters poll. May sales were unchanged from May 2008, though a 1.4% gain was expected. Sales in stores open for at least a year dropped 9%, rather than the forecasted 8.5%. Nonetheless, the positive developments more than offset the negative.
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