H&M profits continue to fall

According to a report by Sweden’s “Industrial Daily” on June 22, H&M’s latest annual report showed that the company’s operating profit in the first half of 2016 was 10.2 billion Swedish kronor, a decrease from nearly 13 billion Swedish kronor in the same period last year. Chief Executive Officer Karl-Johan Persson said that due to the “cold spring” factors this year, the turnover from March to April was significantly lower than expected, and the performance in May was better, with an increase of 11%. He also pointed out that the negative impact of the U.S. dollar exchange rate and increased sales and investment costs also contributed to the decline in profits in the second quarter. The annual report shows that H&M will open 425 new stores in the 2015/16 fiscal year.