Hennes & Mauritz Posts Higher Q4 Profit

Swedish retailer

reported a rise in its fourth-quarter net profit. Hennes & Mauritz's quarterly net profit surged to 6.22 billion Swedish kronor ($760 million), versus a year-ago profit of 5.50 billion kronor. Analysts expected a profit of 6.19 billion kronor. Its revenue climbed 11% to 42.64 billion kronor in local currencies. Its gross margin shrank to 60.4% from 60.8%. In January, the company's total sales are projected to gain 14% in local currencies, versus a 15% rise in the year-ago month. The company also announced its plans to open 400 new stores in 2015. Karl-Johan Persson, CEO said, “We have another exciting year ahead of us, with new opportunities and challenges. 2015 has got off to a good start, with strong sales in both December and January. Although the increasingly expensive US dollar will affect our sourcing costs, we will make sure that we always have the best customer offering in each individual market in terms of fashion, quality, price and sustainability, which form the basis of our business idea.” Hennes & Mauritz shares fell 0.42% to close at $8.22 yesterday.