H&M Q3 Profits Rise Slightly

H&M (Stockholm, Sweden) released its third-quarter earnings, which included an increase in net profits of 0.2 percent at $628.23 million. Profits were weakened by a strong U.S. dollar, which impacted purchasing costs.

Net sales for the company were up 19 percent, excluding any value-added taxes from the European Union. The company reported that hot weather throughout many of its European markets affected its Q3 sales.

The company’s gross margin, however, dropped to 55.9 percent, from 58.3 percent last year.

The company’s new H&M Beauty line launched in July and is reporting “a very good start,” said H&M’s CEO Karl-Johan Persson, according to Women’s Wear Daily.