Hennes & Mauritz Q3 Net Profit Surges 22%

Hennes & Mauritz

reported a 22% rise in its third-quarter net profit. Its quarterly net profit surged to 4.43 billion Swedish kronor ($690 million), from SEK3.62 billion, in the year-ago period. However, analysts were projecting a net profit of SEK4.14 billion. Hennes & Mauritz's sales from Sept. 1 to Sept. 24 rose 8% in local currencies, while gross margin widened to 58.8% from 58.2%. Hennes & Mauritz's sales, excluding VAT, climbed to SEK32.04 billion from SEK28.81 billion. Its operating profit gained to SEK5.76 billion from SEK4.80 billion, versus analysts' estimates of SEK5.33 billion. Hennes & Mauritz shares closed at $8.17 yesterday.